New Delhi: State-run oil companies are expected to log Rs1,01,445 crore revenue loss on sales of petrol, diesel, kerosene and domestic LPG this fiscal, despite softening of global crude oil prices.
In July last year, when international crude prices touched an historic high of $147 a barrel, Indian Oil, Hindustan Petroleum and Bharat Petroleum together were projected to lose Rs2,45,305 crore in revenues.
But with crude falling to four-year low, the losses have trimmed to Rs1,01,445 crore, a Petroleum Ministry official said.
The three firms are currently making a profit of Rs9.86 a litre on petrol and Rs3.48 per litre on diesel but continue to lose Rs12.16 on sale of kerosene through public distribution system and Rs32.97 per domestic LPG cylinder.
The healthy margins on petrol and diesel has prompted the government to think of another round of price cut in the two auto fuels, the official said.
On cards is a Rs5 a litre cut in petrol price and Rs2 per litre reduction in diesel price. Domestic LPG prices are also likely to be lowered by Rs25 per 14.2-kg cylinder.
The official, however, said the timing of the reduction is yet to be decided as many in the government felt the cut should come closer to the general elections for voters to remember.
The final call is likely to be taken by Prime Minister Manmohan Singh and ruling UPA chairperson Sonia Gandhi, he said.
The basket of crude oil, India buys, has averaged $44.88 per barrel in January as against the December 2008 average of $40.61 a barrel.
Indian basket of crude has averaged $93.61 per barrel this fiscal as opposed to $79.25 a barrel average procurement price in 2007-08.