Oil producers ONGC and Oil India has been exempted from the payment of fuel subsidy in the fourth quarter by the government due to the approval by finance ministry to compensate the revenue loss on fuel sales.

In this week the ministry has written a letter to the oil ministry saying that it will pay Rs 5,324 crore in fuel subsidy for the January -March quarter, effectively meeting all of the revenue retailers lost on selling domestic LPG and kerosene at subsidised prices.

The government regulates price of cooking fuels LPG and kerosene to protect the consumers from high international prices.