State-run upstream firms are expected to give a total discount of 51.98 billion rupees ($1.14 billion) to retailers on fuel sales in the Oct-Dec 2010 quarter, up from a year ago, an industry source said on Tuesday.
Upstream companies and explorers -- Oil and Natural Gas Corp,Oil India Ltd and GAIL -- have to sell crude oil and products at a discount to retailers who must sell at government-capped prices.
The source, who did not wish to be identified as a formal letter from the ministry has not been received by his firm, said ONGC's subsidy burden was about 42.22 billion rupees while OIL's share stood at about 5.58 billion rupees and that of GAIL at 4.18 billion rupees.
ONGC's subsidy was 34.97 billion rupees in the third quarter of the fiscal year ending March 31, 2010. Crude prices have climbed in the past year and currently are near two-year highs close to $100 a barrel.
GAIL confirmed it would pay 4.18 billion rupees as it reported quarterly results.
India in June last year granted autonomy to state-run refiners to fix retail prices for petrol, while New Delhi continues to fix the prices of diesel, cooking gas and kerosene.