New Delhi, Aug 08: State-run Indian Oil Corp (IOC) on Friday said it will lose over Rs 3000 crore this year if domestic cooking gas (LPG) and kerosene prices were not revised immediately. IOC lost close to Rs 1000 crore in the first three months of 2003-04 fiscal on under recoveries in LPG and kerosene prices, IOC Director (Finance) P Sugavanam told reporters.

This year Finance Ministry has reduced the subsidy on LPG and Kerosene to two-thirds of the amount allowed in 2002-03. The Rs 67.75 per cylinder subsidy on LPG and Rs 2.45 a litre on kerosene in 2002-03 was not enough to cover the cost and IOC, BPCL, HPCL and IBP together lost Rs 5,430 crore.
For the current year, the subsidy on LPG has been cut to Rs 45.17 a cylinder and that on kerosene to Rs 1.63 a litre.
IOC, Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) have been pleading with the Ministry of Petroleum and Natural Gas to be allowed to raise LPG prices by Rs 40 per cylinder and kerosene by Rs 2 per litre. Bureau Report