IOC, the largest fuel retailer, will receive a government subsidy of about 161 billion rupees

India will pay 300 billion rupees to state-owned fuel retailers forced to sell at cheaper government-set rates in the first half of the year, said three sources who saw the finance ministry's confirmation letter. The government fixes retail prices of liquefied petroleum gas, kerosene and diesel to protect the poor, leading to revenue losses at state-run Indian Oil Corp (IOC) , Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) .