The Government is likely to exempt oil producers oil India Ltd and ONGC from paying subsidy in the fourth quarter ending March 31, a senior Petroleum Ministry Official said today.

“We have a verbal assurance from the Finance Ministry that upstream companies will not have to bear any subsidy in the fourth quarter,” the official said on the sidelines of ‘Urja Sangam’ conference

The government regulates the price of LPG and kerosene to shield poor.

Oil Minister Dharmendra Pradhan said his ministry and the Ministry of Finance are working together to formulate a subsidy-sharing mechanism. “Their profitability is complementary to each other”,he said.