New Delhi: State-run Indian Oil, Hindustan Petroleum and Bharat Petroleum are likely to get bonds worth Rs9,080 crore bonds as part compensation for selling fuel below cost during the third quarter ended 31 December 2007.
IOC is slated to get Rs5,100 crore worth of oil bonds from the government, HPCL Rs1,900 crore and BPCL Rs2,080 crore, official sources said.
Government had last week issued bonds worth Rs11,256.92 crore to three PSU oil marketing companies to compensate them for under-recoveries on selling petrol, diesel, domestic LPG and PDS kerosene in April-September 2007 period.
For April-September losses, IOC got Rs6,362.25 crore worth of oil bonds, BPCL Rs2,539.13 crore and HPCL Rs2,355.54 crore worth of bonds carrying coupon rate of 7.95% and maturing in 2025.
Sources said the third quarter oil bonds have been calculated at the rate of 42.7% of the total under-realisation on sale of the four fuel. One-third of the losses get compensated by way of discounts on crude oil from companies such as ONGC and the remaining of under-realisation are borne by the fuel retailers.
For October-December quarter, the retailers got Rs7,083 crore from upstream firms and the remaining of the Rs21,264.6 crore under-realisation on sale of petrol, diesel, LPG and kerosene was borne by IOC, BPCL and HPCL.
The total under-realisation on sale of the four fuels during April-December has been pegged at Rs47,628 crore, of which the government compensated Rs20,336.92 crore via bonds.
For the full fiscal, the aggregate loss of IOC, BPCL and HPCL on fuel sales is being pegged at Rs71,808 crore.
They currently lose Rs10.6 per litre on petrol, Rs11.6 a litre on diesel, Rs331.4 per LPG cylinder and Rs19.89 per litre on PDS kerosene.
During April-September, oil bonds worth Rs11,257 crore were issued to the oil companies and Rs8,788 crore assistance was received from upstream companies like ONGC and OIL.
Petrol and diesel prices were last raised in June 2006 when crude oil was at $67 a barrel. LPG prices were last raised by Rs20 per cylinder in November 2004 when crude was at $34 a barrel, while kerosene prices have not been changed since 2002 when crude was at $23 per barrel.