India's ONGC says Q2 subsidy jumps from a year ago

NEW DELHI Thu Nov 8, 2012 5:43pm IST

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NEW DELHI Nov 8 (Reuters) - India's state-run producer Oil & Natural Gas Corp has provided for subsidy of 123.30 billion rupees ($2.3 billion) for the September quarter in the form of discounts to state oil marketing companies, more than double the provision in the same quarter a year earlier.

ONGC does not fully benefit from rising crude prices because India caps prices of petroleum products such as diesel, cooking gas and kerosene. Producers such as ONGC share the cost of the subsidies by selling crude to refineries at a discount.

As a result, its net realisation after discount was $46.8 per barrel, down from $82.62 a barrel a year ago, ONGC said. ($1 = 54.10 rupees) (Reporting by Nidhi Verma; Editing by Jijo Jacob)

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