Oil firms may see Rs 37000cr under-recoveries

Oil companies could face under-recoveries to the tune of Rs 37,000 crore due to non-revision of domestic fuel prices even as global crude prices have shown a rising trend in recent times.

Clarifying on news reports that oil companies were facing losses due to non-revision of prices, petroleum minister Mani Shankar Aiyar said oil firms were recording under-recoveries and not "losses".

"The total under-recoveries of oil companies since November 2004, when prices were last revised, stand at Rs 20,000 crore and the figure could go up to Rs 37,000 crore if the issue was not addressed," he said.

Aiyar had met CPI leader A B Bardhan yesterday in a bid to convince the left parties on the need to raise petroleum prices, but the meeting remained inconclusive.