New Delhi: State-run petroleum companies Indian Oil Corp. Ltd, Hindustan Petroleum Corp. Ltd and Bharat Petroleum Corp. Ltd are likely to lose Rs1.8 trillion on fuel sales during the current fiscal that began on 1 April, after a surge in crude oil prices and a weakening rupee widened losses.
The cost of crude oil imports would spiral after its global price inched closer to a record $125 per barrel. India imports 73% of its crude oil needs.
The basket of crude oil India imports stood at $120.65 per barrel on Thursday, a 91% jump over the last fiscal’s lowest price of $62.91 recorded on 9 May 2007.
The expected losses the companies would make by selling transport and cooking fuels under market prices was earlier pegged at Rs1.5 trillion in 2008-09. But with rising crude and weakening rupee, the losses may now shoot up to Rs1.8 trillion.
The government currently compensates the companies 42.7% of the revenue loss by issuing oil bonds. This may be raised to 50%, said officials close to the development.
They said the oil firms were now losing Rs16.34 a litre on petrol, Rs23.49 a litre on diesel, Rs305.90 for every cylinder of liquefied petroleum gas, and Rs28.72 a litre on kerosene.