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Oil firms losing Rs235 crore per day on fuel sales

Oil firms losing Rs235 crore per day on fuel sales
PTI
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First Published: Thu, Aug 18 2011. 06 44 PM IST
Updated: Thu, Aug 18 2011. 06 44 PM IST
New Delhi: State-run Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum are losing Rs235 crore per day on selling diesel, LPG and kerosene below cost, minister of state for petroleum and natural gas R. P. N. Singh said on Thursday.
“The oil marketing companies (OMCs) are currently incurring under-recoveries of Rs4.97 per litre on diesel, Rs23.74 per litre on PDS kerosene and Rs247 per cylinder of domestic LPG,” Singh said in a written reply to a question in the Lok Sabha here.
The current sales price of these retail fuels in Delhi -- Rs41.29 per litre of diesel, Rs395.35 per 14.2-kg LPG cylinder and Rs14.83 per litre of kerosene -- is way below the imported cost of the fuel.
“At these rates, the OMCs are incurring a daily under- recovery (revenue loss) of Rs235 crore,” he said.
“In order to insulate the common man from the impact of the rise in oil prices in the international market and in view of the domestic inflationary conditions, the government continues to modulate the retail selling price (RSPs) of diesel, PDS kerosene and domestic LPG and the RSPs of these petroleum products are below the required market price,” he added.
Petrol prices have risen by 21% since they were freed from government control in June last year. The price of petrol in Delhi was Rs51.43 a litre when the government decontrolled the fuel on 26 June 2010. On Thursday, it costs Rs63.70 a litre.
Singh said the average price of the basket of crude oil India buys was $69.76 per barrel in 2009-10, which increased to $85.09 a litre in 2010-11.
“During 2011-12, the average price of the Indian basket of crude oil was $112.11 per barrel.”
Over 40% of the Rs63.70 a litre price of petrol in Delhi is made up of taxes -- a Rs0.69 customs duty, Rs14.78 in excise and Rs10.62 in state VAT -- he said.
However, in the case of diesel, the total taxes account for only Rs7.64 out the retail price of Rs33.65 in Delhi. The taxes include Rs0.74 in customs duty, Rs2.06 in excise duty and Rs4.84 state VAT.
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First Published: Thu, Aug 18 2011. 06 44 PM IST
More Topics: Oil | Crude | IOC | BPCL | Lok Sabha |