Executives in state-run Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum have accepted that they offer small discounts to these customers and denied recovering any part of the amount from the government or upstream companies as compensation. But spokespersons of the three firms declined comments on record.
A government official said CAG has asked the government for details about the matter after the auditor detected these discounts while examining some of some defence establishments. CAG spokesman did not respond to ET’s email query.
Oil company executives and government officials and anxiously studying the issue as CAG’s reports have created a storm in sectors such as telecoms, oil and gas, and aviation. The auditor is also investigating the government’s handling of ultra mega power projects. Two senior officials said that the government would examine the matter and ask firms to end such discounts in the fuel segment where they do not have private competition. "Discounts are minuscule as crude oil constitutes about 90% of companies’ costs," one of them said on condition of anonymity.