There is good news for the new finance and petroleum ministers: The under-recovery on sensitive petroleum products is set to fall 20 per cent — from Rs 1,39,869 crore during 2013-14 to Rs 1,11,000 crore in 2014-15.
According to petroleum ministry estimates, for 2014-15, the first year of the Narendra Modi-led Bharatiya Janata Party (BJP) government, the oil subsidy burden will be the lowest since 2011-12. The loss on diesel, kerosene and cooking gas (LPG) is expected to be Rs 35,000 crore, Rs 29,000 crore and Rs 47,000 crore, respectively.