Under-recoveries
Hope finance ministry will compensate oil cos for FY25 under-recoveries, says Oil minister
This story was originally published at 21:17 IST on 1 July 2025
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--Oil minister: Hopeful fin min will release compensation to oil cos
--CONTEXT: Oil Minister Puri on sidelines of Chartered Accountants Day event
--Oil minister: Higher ethanol blending decision after consulting stakeholders
NEW DELHI – Petroleum Minister Hardeep Singh Puri Tuesday said he is hopeful the finance ministry will release around INR 400 billion as compensation to state-run oil marketing companies for their under-recoveries in 2024-25 (Apr-Mar). "Whatever is owed to the OMCs will be given to them," Puri said on the sidelines of an event to mark Chartered Accountants' Day.
The funds are expected to be routed through the Consolidated Fund of India, based on collections from the recent INR 2 per litre excise duty hike on petrol and diesel. The hike is expected to fetch the government about INR 320 billion, according to Petroleum Secretary Pankaj Jain.
On crude oil prices, Puri said there was no cause for concern, with adequate availability in the market.
Crude oil prices had surged last month due to the Israel-Iran conflict. Prices eased after a ceasefire was announced between the two countries. Moreover, the Organization of the Petroleum Exporting Countries and its allies are likely to announce increase in production for August in their upcoming meeting on Sunday.
On ethanol blending beyond 20%, Puri said the decision will be taken after consulting stakeholders. "We have (almost) reached a 20% blending target...now moving forward from here, we will require stakeholder consultation," he said.
India has achieved 18.8% blending with petrol as of May in 2024-25 (Nov-Oct). In May, oil companies achieved 19.8% blending with petrol. Oil marketing companies blend ethanol with petrol to reduce import dependency and promote green mobility. End
Reported by Afra Abubacker
Edited by Ashish Shirke
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