petroleum companiesImage Credit source: Representational Image
The government is going to fulfill the promise made in the budget to give 30 thousand crore rupees to the country’s oil marketing companies. The government is planning to increase its stake in oil companies by infusing Rs 30,000 crore. After that, the government oil companies of the country will have to submit a complete detailed report to the government about their investment plan. If experts are to be believed, it is thinking of increasing its stake with the money given by the government. At the same time, oil companies will also have to give the details of their investment plan in front of the Finance Ministry, which will be related to pollution reduction and refinery upgradation.
Finance ministry will have to give detail plan
In ET’s report, government officials say that this Rs 30,000 crore is not a subsidy to oil companies for selling petrol and diesel at low prices. At present the companies OMCs need Rs. But the government is not going to give subsidy to them. On the other hand, the fear of different methods is troubling the oil companies. Oil companies are afraid that the shares, market value and market sentiment of the companies may not be spoiled by the offer of equity infusion.
Oil companies gave options to the government
On the condition of anonymity, an oil company official told ET that we are aware of the government’s plan to increase equity in our company, but we have given options to the government. He said that the OMCs have asked the government to either give them a financial grant or a loan to meet their capital expenditure requirements. Apart from this, distribute Rs 30,000 crore in the ratio of capital expenditure for FY24. According to the official, the oil companies are not in a better financial condition. We were expecting financial help from the government, but nothing has come so far.
27,276 crore loss in the first half of last year
IOC, BPCL and HPCL petroleum companies meet 90 percent of the country’s fuel requirement. In the first half of the last financial year, there was a loss of 27,276 crores on selling fuel and domestic cooking gas. Domestic LPG prices are controlled by the government and petrol and diesel prices are fixed by OMCs. The government has 51.50 percent stake in the country’s largest oil company IOC, the rest is with the public. In BPCL, the public holds 46.71 per cent while the government holds 52.98 per cent. In HPCL, ONGC holds 54.90 per cent stake and the rest is held by the public.