“A 25 paise increase in kerosene price increase is being implemented. It is estimated that due to the difference in the market price and the price at PDS outlets, about 40% of the subsidized kerosene is diverted for adulterating diesel. The spokesperson said the intention is to sell kerosene at the international price and to directly transfer the subsidy to customers’ bank accounts. In Mumbai, oil companies get Rs.15.42 a litre for subsidized kerosene, incurring a loss of Rs.13.12 a litre, according to the oil ministry’s Petroleum Planning and Analysis Cell. The finance ministry has earmarked Rs.26,947 crore of oil subsidy—for kerosene and LPG—for 2015-16.

Source: Mint July 13, 2016 15:47 UTC