State oil companies have been told to stop unnecessary discounts and wasteful expenditures immediately. The government diktat comes as it plans a series of measures to cut costs and minimise the need to raise fuel prices, oil ministry officials said. 

As per a report in ET, the action plan seeks to end discounts on diesel sales to the railways, stop jet fuel sale on credit, allocate more gas to refineries to help save 10 MT of liquid fuel consumed internally, reduce supply of subsidized cooking gas and ensure that propane and butane gases are mixed in the right proportion in LPG cylinders. 

"The government has taken substantial subsidy burden for many years. It has also raised fuel prices. Now, it is time the oil marketing companies also set their house in order," a government official said.

The ministry, which recently raised prices of cooking gas, kerosene and diesel, has warned refiners, including Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp, that it would cut subsidy payments if they keep selling diesel at a discount to the Railways.