Mangalore: ONGC said on Friday that it was against ad hoc subsidisation of LPG and kerosene and instead demanded a transparent mechanism for it to share the subsidy.
ONGC Chairman and Managing Director R S Sharma said the subsidy burden on ONGC this fiscal is likely to be around Rs 22,000 crore as against Rs 11,959 crore last fiscal.
"We don't resent the increased amount but are against the ad hoc mechanism of subsidy sharing," Sharma said.
Upstream oil companies like ONGC have to share about one-third of the under-recoveries incurred by oil retailing firms like IOC, BPCL and HPCL on selling petrol, diesel, LPG and kerosene below the cost of production.
The share of upstream companies this fiscal will be Rs 24,000 crore.
Sharma said the increase in subsidy burden will put pressure on companies' margin but investment, domestic and overseas, will remain unaffected.
"Our concern is methodology and modalities of subsidy sharing, not the numbers. We have been pleading that ONGC was ready to share the subsidy burden but that should be in the form of a cess on the domestically-produced crude oil," he said.
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