The country's largest fuel retailing firm, Indian Oil Corp (IOC), is losing about Rs 100 crore daily on sale of petrol, diesel, lpg and kerosene below the production cost.The Rs 3-4 per litre hike in auto fuels planned is not sufficient to cover the deficit."Our under-realisation stands at Rs 100 crore per day," S Behuria, chairman of IOC, said today. The company, which lost Rs 14,011 crore in revenues during FY06, projected a total under realisation of Rs 8,300 crore in the first quarter of the current financial year.Petrol is currently being sold at a loss of Rs 10.55 a litre, diesel at Rs 9.88 a litre, kerosene at Rs 16.78 per litre and LPG at a loss of Rs 120 per cylinder, Behuria said.Petroleum minister Murli Deora is likely to meet Finance Minister P Chidambaram on Monday to discuss a package comprising of moderate fuel price hike and duty cuts, to bailout public sector oil firms, who otherwise stand to lose Rs 73,500 crore in revenue this fiscal.Monday's meeting is likely be followed by the two minister meeting the prime minister, possibly on wednesday when an announcement of increase in atleast petrol and diesel prices is expected.Behuria said the reports of government considering Rs 3-4 per litre increase in petrol and diesel prices, without touching lpg and kerosene, was not sufficient to cover for losses.The government has not allowed oil marketing companies to raise prices since September last year, although international crude prices have shot up to more than $70 dollars a barrel.
