India Said to Consider Doubling ONGC’s Fuel Subsidy Bill
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Oil & Natural Gas Corp., India’s biggest energy explorer, may be forced to double the amount it pays to support fuel sales at below-market prices, two people with direct knowledge of the matter said. The shares fell.
India’s government is considering increasing ONGC’s contribution to the fuel subsidy to about 470 billion rupees rupees ($9.8 billion) as it seeks to reduce state spending and rein in the fiscal deficit, one of the people said, asking not to be identified because the details are private. The New Delhi-based company paid 248.9 billion rupees in the year ended March 31, according to a May 30 stock exchange filing.