Decline in international crude oil prices has led to a reduction in revenue losses on fuel sales by one-fourth, but a cut in retail prices was not likely in the near future.
Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum have seen revenue losses on sale of petrol, diesel, LPG and kerosene coming down to Rs 450 crore per day from Rs 600 crore per day, industry sources said.
The basket of crude that India buys has averaged $114.37 a barrel this month as against the July average of $132.47 per barrel.
"The fall in international prices is a relief but the companies are still losing money and we don't see a reduction in retail prices happening till they continue to suffer losses," a Petroleum Ministry official said.
Based on the average price of the first fortnight of August, retailers were losing Rs 7.07 per litre on petrol, Rs 16.22 on diesel, Rs 39.55 on kerosene and Rs 348.89 per 14.2 kg LPG cylinder.
These are lower than Rs 11.60 per litre on petrol and Rs 23.23 on diesel based on the average price on second fortnight of July.
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While petrol and diesel prices are calculated every fortnight, LPG and kerosene prices are calculated once a month.
The three companies are now projected to lose Rs 1,84,801 crore during the full fiscal. A fortnight back they were projected to lose Rs 2,05,740 crore in 2008-09.
IOC, the company that controls about 54 per cent of the market, is projected to lose Rs 1,01,549 crore on fuel sales this fiscal.