New Delhi : As oil prices rise, Moody’s Investors Service said ONGC and Oil India face increasing risk of the government once again requiring them to share the fuel subsidy burden.
The risk of them being asked to once again bear a part of the subsidy is looming with the recent rise in international oil rates, Moody’s said. “Because of the government’s widening fiscal deficit, ONGC and OIL could be asked to bear part of the Indian government’s fuel subsidy for oil, if prices stay above $60 per barrel,” Moody’s said.