IOC still losing Rs 40 cr every day

Indian Oil Corporation (IOC) is losing about Rs 40 crore every day on fuel sales as domestic retail prices continue to remain below imported cost despite the fall in international crude prices.

"We are still making losses on diesel, LPG and kerosene sales though the fall in international oil prices has helped us make a marginal profit on petrol," IOC chairman S Behuria said.

IOC was making a profit of Rs 4.50 a litre on petrol but was losing about 45-50 paise per litre on diesel. While the profit on petrol has risen from about Rs 4 a litre last fortnight, the loss on diesel has come down from Rs 1.62 a litre. Loss on kerosene was more than Rs 14 a litre and that on LPG Rs 102 per cylinder.

Petrol, diesel, LPG and kerosene make up for 66% of the total volume of petroleum products. Of this, petrol accounts for only 8% and the rest were still being sold at a price below imported cost. "Overall, we are losing about Rs 40 crore per day," Behuria said.