IOC losing Rs 79 cr per day on selling fuel below cost
State-run Indian Oil Corp (IOC), the nation's largest fuel retailer, is losing about Rs 79 crore per day on selling auto and cooking fuel below cost.business Updated: Sep 16, 2009 14:15 IST
State-run Indian Oil Corp (IOC), the nation's largest fuel retailer, is losing about Rs 79 crore per day on selling auto and cooking fuel below cost.
"International oil prices have softened a bit, resulting in a marginal reduction in our under-recoveries on petrol, diesel, domestic LPG and kerosene," an IOC official said.
IOC and sister PSUs - HPCL and BPCL, who have been barred by the government from revising fuel prices to keep inflation under check, calculate the desired selling price for petrol and diesel on 1st and 16th of every month based on the previous fortnight's average global oil price.
The three firms currently lose Rs 3.63 per litre on petrol and Rs 2.33 a litre on diesel. These are lower than Rs 4.69 per litre loss on petrol and Rs 3.09 a litre on diesel they suffered in the first fortnight of September.
"IOC lost Rs 90 crore per day on fuel sales in the first fortnight of September. This has come down to Rs 79 crore a day from today," the official said.
On domestic LPG and kerosene, the desired price of which is calculated on a monthly basis, the three firms make a loss of Rs 158.55 per 14.2-kg LPG cylinder and Rs 17.15 on every litre of kerosene sold.
"At current oil prices, IOC will end the fiscal with a revenue loss of Rs 23,510 crore and the industry (IOC plus BPCL and HPCL) will see a revenue loss of Rs 41,440 crore," he said.