<p>The government has capped the subsidy it will pay on kerosene at Rs 12 per litre while deciding to foot the entire bill on domestic cooking gas, a senior official said.<br><br>The Finance Ministry will pay Rs 12 per litre in cash to state-owned fuel retailers and any unbridged gap between the retail selling price and the cost of production will be borne by upstream companies like ONGC, he said.<br><br>Currently, oil companies sell kerosene at a loss of about Rs 18 per litre. Of this, the government will foot Rs 12 and the rest will come from upstream firms.<br><br>"At current oil prices, the upstream share for the full fiscal may be Rs 5,000-6,000 crore," he said.<br><br>For LPG, the government has decided to fully bear the difference between the cost and the retail selling price.<br><br>The Budget for 2015-16 has provided for Rs 22,000 crore towards LPG subsidy and another Rs 8,000 crore on kerosene.<br><br>"While provisioning for kerosene is sufficient, additional funds may have to be provided in supplementary demands for LPG," he added.<br><br>(PTI)</p>
