The oil marketing companies calculate their projected losses for petrol and diesel every fortnight taking into account the average crude oil prices in the previous one. Losses for kerosene and cooking gas are calculated at the beginning of each month.
Indian Oil Corporation (IOC), which sells over half the fuels the country consumes, is projected to lose Rs 16.70 on every litre of petrol it sells and Rs 27.61 on every litre of diesel. The company was losing Rs 14.92 per litre of petrol and Rs 24.90 per litre of diesel in so far this month.
The average price of the Indian basket of crude oil is $139.68 per barrel so far this month. In June the average price of the basket was $129.72 per barrel. At current prices the "under-realisation" of the three oil marketing companies are projected to Rs 222,785 crore in 2008-09.
The oil marketing companies