ONGC losing Rs 900 crore for every varying Re

New Delhi, July 20 (UNI) State-run Oil and Natural Gas Corporation (ONGC) is losing Rs 900 crore for every variying rupee vis-a-vis the dollar and the subsidy burden of the upstream major is likely to be lower this quarter in comparison to Rs 5,100 crore same period last year.

''Every one rupee variation results into a loss of Rs 900 crore in the comapny's revenues,'' Oil and Natural Gas Corporation Chairman R S Sharma said.

The government has agreed to consider exchange rate losses for state-run oil companies while calculating the subsidy they have to bear, he said.

''The step has been taken in the backdrop of rupee appreciation against the dollar which impacts the billing of ONGC,'' Mr Sharma told reporters in a conference.

''During April-May, company's gross billing was 70 dollar per barrel which was higher than the previous year.'' The exchange rate has had an impact on the total revenue and the gross billing is getting affected, he said.

Petroleum Secretary M S Srinivasan had earlier said the under-recoveries on sale of petrol, diesel, LPG and kerosene this financial year will be around Rs 55,000 crore.

Under-recovery is the gap between the subsidised price and the desired selling price.

Upstream companies such as ONGC and OIL will share the under-recovery burden to the extent of Rs 19,000 crore.

UNI