Indian Oil Corporation (IOC) lost about Rs 4,900 crore in revenue during the first quarter of the current fiscal on selling fuel below cost."The Rs 2.50 per litre increase in petrol and Rs 2 per litre hike in diesel price, announced last month, is grossly inadequate to cover the spurt in international oil price and increased incidence of taxation," a senior IOC official said.Despite the hike, petrol is under-priced by Rs 2.25 per litre while diesel is being sold at a loss of Rs 4.69 per litre, he added.Of the Rs 4,900 crore lost between April and June, roughly Rs 2,700 crore was on sale of kerosene through the public distribution system (PDS) and cooking gas (LPG). "We are making a net loss of Rs 130 on sale of every LPG cylinder and over Rs 11 on every litre of kerosene sold," the official said.
