New Delhi:State-run Indian Oil Corp is making a daily revenue loss of Rs159 crore ($35 million) for selling diesel and cooking fuels at government-fixed cheaper rates, the company said.
In June 2010, India freed state-run fuel retailers to fix petrol prices but continued to have control on prices of diesel and cooking fuels to tame inflation and protect the poor.
IOC, the nation’s largest refiner and fuel retailer, raised petrol prices by Rs 2.50 a litre from Sunday versus a desired hike of Rs 3.72, the company said in a statement issued late on Sunday.
IOC is expected to suffer a gross revenue loss of Rs 406 billion in the current fiscal ending 31 March on sale of fuel at cheaper rates, it said.
India partly compensate state retailers for revenue losses through cash subsidy, while upstream firms Oil and Natural Gas Corp, Oil India and GAIL (India) offer discount on sale of crude oil and products.
Explorer ONGC on Monday said its net realisation from crude oil sales decline with rising global crude oil prices as it had to offer higher discount to state refiners.
“Consumer, service provider and the industry want stability so that fluctuating crude prices do not play spoilsport in energy planning,” ONGC chairman R.S. Sharma said in a statement.