IOC losing Rs 92 cr daily on fuel sales
State-run Indian Oil Corp is losing Rs 92 crore per day on sale of petrol, diesel, domestic LPG and kerosene as government has not allowed it to revise rates in line with firming international oil prices.
New Delhi: State-run Indian Oil Corp is losing Rs 92 crore per day on sale of petrol, diesel, domestic LPG and kerosene as government has not allowed it to revise rates in line with firming international oil prices.
"International crude oil prices are on the rise again and so are our under-recoveries (or revenue loss) on fuel sales," an IOC official said.
The company is currently losing Rs 3.85 per litre on petrol, Rs 3.71 a litre on diesel, Rs 16.34 per litre on kerosene sold through PDS and Rs 201.88 per 14.2 kg domestic LPG cylinder.
"Till last week, we were losing Rs 84 crore per day on the four products. This is now widened to Rs 92 crore a day," he said.
At current rates, IOC may end the fiscal with a revenue loss of Rs 25,440 crore.
The revenue loss for the industry (IOC and Bharat Petroleum and Hindustan Petroleum) is projected at Rs 45,160 crore in 2009-10. "The industry is losing about Rs 163 crore per day," he said.
The official said the government had earlier this year decided to make good all of the revenue loss on sale of domestic LPG and kerosene through issue of oil bonds, while the same on petrol and diesel would be mostly met by upstream firms like OIL and Natural Gas Corp (ONGC).
"But the government is yet to issue oil bonds for the revenue loss in first half," he said.