According to the Petroleum Ministry, for the fortnight starting March 1, 2012, under recovery (difference between the cost and selling price) on a cylinder of domestic LPG is estimated at Rs 439.
While the under recovery on a litre of diesel is estimated at Rs 12.04, that on a litre of kerosene is pegged at Rs 28.54.
The burden of compensating oil marketing companies for their under recovery is partly borne by the government and some by the upstream companies such as ONGC, Oil India and GAIL. This is in addition to a subsidy of Rs 0.82 per litre on PDS kerosene and Rs 22.58 per cylinder on domestic LPG, provided by the government.
Oil marketing companies will get additional subsidy of Rs 15,000 crore for 2011-12. The amount is provided in the third set of supplementary demands for grants tabled in Parliament recently.