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Oil firms losing Rs650 cr a day on fuel sales

Oil firms losing Rs650 cr a day on fuel sales
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First Published: Mon, Jun 02 2008. 11 41 AM IST
Updated: Mon, Jun 02 2008. 11 41 AM IST
PTI
New Delhi: The Government’s reluctance to take ‘harsh’ measures to contain the fallout of rising global crude oil prices have seen widening of losses of state-run companies on fuel sales to Rs650 crore per day.
“Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL), who till last week were losing about Rs580 crore per day on sale of petrol, diesel, domestic LPG and PDS kerosene, are incurring a revenue loss of close to Rs650 crore from 1 June,” industry sources said.
Government spent large part of the last fortnight in consultations including at the highest level to combat the projected Rs2,25,040 crore revenue loss on fuel sales.
But with inflation climbing to 45-month high of 8.1%, the discussions between Prime Minister Manmohan Singh and UPA Chairperson Sonia Gandhi have yielded no decision.
Sources said the three firms, who till last week were losing Rs16.34 a litre on petrol, are incurring a loss of Rs21.43 on sale of every litre since 1 June. Similarly, the losses on diesel have widened to Rs31.58 per litre from Rs23.49. On kerosene, the loss has increased to Rs35.98 from Rs28.72 per litre.
IOC, BPCL and HPCL calculate import parity price of petrol and diesel on the first and the 16th of every month based on the average of the previous fortnight. LPG and kerosene prices are calculated one a month based on monthly average imported price.
There is likelihood that a meeting of the Cabinet may take place this week to decide on the fiscal package that may include raising fuel prices and marginal duty cuts.
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First Published: Mon, Jun 02 2008. 11 41 AM IST
More Topics: Petrol | Diesel | Fuel Prices | IOC | HPCL |