 "Diesel under-recovery up to Rs 14.5 per litre")
Making the plans by the government to go for a higher dose of diesel price hike, the under-recovery on diesel for the second fortnight of September zoomed to Rs 14.50 per litre, as compared to Rs 12.12 per litre during the previous fortnight.
The decision on higher dose of diesel decontrol would be up before the Cabinet committee on political affairs soon. There were reports that the petroleum ministry may increase prices by at least Rs 3 per litre, following the increase in international prices and its subsequent impact on under-recovery. After the decision to go for a phase-wise decontrol of diesel prices in January this year, the ministry of petroleum and natural gas is looking to go for a higher dose of diesel price hike, more than the mandated 50 paise per month.
In the case of kerosene and domestic LPG, under-recoveries for the month of September 2013 remain at Rs 36.83 per litre and Rs 470.38 per cylinder respectively, as the price of PDS Kerosen and Domestic LPG are determined on monthly basis.
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OMCs are incurring higher combined daily under-recovery of about Rs 486 crore on the sale of diesel, kerosene and domestic LPG. This was Rs 461 crore for the previous fortnight. Oil marketing companies have reported Rs 25,579 crore as under-recoveries during first quarter of 2013-14 on the three sensitive products.
The international crude oil price of Indian basket inched up a fraction to $ 110.68 per barrel on Friday, compared to $ 110.61 per barrel last Thursday. In rupee terms, the crude oil price increased to Rs 7060.28 per barrel mainly due to rupee depreciation. Rupee dollar exchange rate on last Friday at Rs 63.79 per dollar.
| Product | Under Recovery (Rs/Crore) | |||
| 2013-14 | ||||
| (1st Quarter) | 2012-13 | 2011-12 | 2010-11 | |
| Diesel | 10,554 | 92,061 | 81,192 | 34,706 |
| PDS Kerosene | 6,507 | 29,410 | 27,352 | 19,484 |
| Domestic LPG | 8,518 | 39,558 | 29,997 | 21,772 |
| Petrol | -- | -- | -- | 2,227 |
| Total | 25,579 | 1,61,029 | 1,38,541 | 78,190 |