A government source told reporters that the Indian government has asked upstream oil companies to compensate state run oil refiners for 37.91% of revenue losses on fuel sales during April to December 2011.

The source who declined to be identified said that "Together, upstream companies' subsidy share will be INR 368.94 billion.”

For the first two quarters of the current fiscal year, upstream companies had compensated 33.33% of the losses due to state set fuel prices.

India's federal government fixes the retail prices of liquefied petroleum gas, kerosene and diesel to protect the poor, leading to revenue losses at Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp.

(Sourced from ET)