"They (Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum Corp) could report meagre profits in previous years only after taking into account the cash assistance provided by the Government and the discount on sale of crude oil and product offered by upstream oil companies," Lakshmi told parliament in a written reply.
"Without compensation for under-recoveries, all OMCs would have declared huge losses," the minister said.
In order to insulate the common man from the impact of rise in international oil prices and domestic inflationary conditions, the government continues to modulate retail selling prices of diesel, kerosene and cooking gas, Lakshmi added.
"As a result, the public sector OMCs have incurred under-recovery of Rs.1,61,029 crore during 2012-13 and Rs.25,579 crore during April-June 2013," an oil ministry statement said.
--IANS (Posted on 27-08-2013)