Using your phone's internet browser
go to:  qna.rediff.com
Click and drag this link to
the Home icon in your browser.
Q.

How do oil companies make profit when government gives subsidy? Does it mean, government pays so oil companies should make profit? Government makes more money from taxes on fuel Than they give subsidy. Please explain me logic behind all this?

Tags: money, companies, oil companies
Asked by up front, 28 Sep '12 10:35 pm
  Invite a friend  |  
  Save  |  
 Earn 10 points for answering
Answer this question  Earn 10 points for answering    
4000 characters remaining  
  
    
Keep me signed inNew User? Sign up

Answers (2)

1.

I don't know much about economics and this is as strange to me as Rs. 29/- per day BPL limit
Answered by Manoj Adwani, 29 Sep '12 12:28 am

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received
2.

Govt. gives subsidy to some level, but oil co. would land up in loss due to inventory management, cost of conversion due their technology, etc.
Answered by MAdhavan Avadhany, 28 Sep '12 10:40 pm

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received

Ask a Question

Get answers from the community

600 characters remaining