IOC, HPCL, BPCL to lose Rs1,28,135 cr on fuel sales in FY 09

IOC, HPCL, BPCL to lose Rs1,28,135 cr on fuel sales in FY 09

New Delhi: Indian Oil, Hindustan Petroleum and Bharat Petroleum are projected to lose Rs1,28,135 crore on fuel sales this fiscal, 13% lower than previously anticipated revenue loss as a fall in international oil prices has brought some relief.

The fall in global crude prices has seen the projections for revenue loss on sale of petrol, diesel, domestic LPG and kerosene being lowered from Rs1,47,592 crore, anticipated last month, to Rs1,28,135 crore now, an industry official said.

IOC, BPCL and HPCL lost Rs92,853 crore on fuel sales (audited figures) in April-September and they are projected to lose Rs35,282 crore in the second half of 2008-09 fiscal.

For the first time in more than 12 months, oil companies have started making profit on sale of petrol, but they continue to lose Rs155 crore per day on diesel, LPG and kerosene sales.

The three firms, based on the average price of second fortnight of October, are making Rs4.12 a litre profit on petrol sale. But they are losing Rs0.96 a litre on diesel, Rs22.40 per litre on kerosene and Rs343.49 per LPG cylinder.

But the companies say retail fuel prices should not be cut till losses on diesel are wiped out and those on LPG and kerosene reduced substantially.

“We continue to lose Rs13 crore per day on diesel sales, Rs87 crore on kerosene and Rs59 crore per day on LPG sale. The losses will widen if prices are reduced now," he said.

IOC posted its largest ever net loss of Rs7,047.13 crore in July-September quarter. BPCL posted a net loss of Rs2,625.17 crore in second quarter on top of Rs1,066.70 crore in April-June, while HPCL reported Rs888.12 crore loss in Q1 and another Rs3,218.92 crore in Q2.