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Oil firms to lose Rs 650cr a day on fuel sale

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 9:23 PM IST

Indian Oil, Bharat Petroleum and Hindustan Petroleum, who were losing about Rs 580 crore per day until last week on the sale of petrol, diesel, domestic LPG and PDS kerosene, are incurring a revenue loss of close to Rs 650 crore from June 1, industry sources said.

The government spent large part of the last fortnight in consultations including at the highest level to combat the projected Rs 2,25,040 crore revenue loss on fuel sales. But with inflation climbing to 45-month high of 8.1 per cent, the several rounds of discussions at the level of Prime Minister Manmohan Singh and UPA Chairperson Sonia Gandhi have yielded no decision.
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Sources said the three firms that were losing Rs 16.34 a litre on petrol until last week, are incurring a loss of Rs 21.43 on sale of every litre from June 1. Similarly, the losses on diesel have widened to Rs 31.58 per litre from Rs 23.49 while on kerosene they have jumped to Rs 35.98 from Rs 28.72 per litre.

Losses on LPG have swelled to Rs 353 per 14.2-kg cylinder from Rs 305.90.

IOC, BPCL and HPCL calculate import parity price of petrol and diesel on the first and the 16th of every month based on the average of the previous fortnight. LPG and kerosene prices are calculated once a month based on monthly average imported price.

There is likelihood that a Cabinet meeting may take place either on Wednesday or Thursday to decide on the fiscal package that may include raising fuel prices and marginal duty cuts.

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First Published: Jun 02 2008 | 11:40 AM IST

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