Oil firms will suffer loss of Rs 45,478 cr this year: Deora | business | Hindustan Times
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Oil firms will suffer loss of Rs 45,478 cr this year: Deora

Public sector oil marketing companies will incur a loss of Rs 45,478 crore in 2009-10, Petroleum Minister Murli Deora has told the Parliamentary Consultative Committee of his ministry.

business Updated: Dec 11, 2009 20:28 IST

Public sector oil marketing companies will incur a loss of Rs 45,478 crore in 2009-10, Petroleum Minister Murli Deora has told the Parliamentary Consultative Committee of his ministry.

Chairing a meeting in New Delhi on Thursday evening, Deora said the oil marketing companies "incur under-recoveries of Rs 3.10 per litre of petrol, Rs 2.55 per litre of diesel, Rs 17.30 per litre of kerosene and Rs 241 on each 14.2-kg cylinder" of cooking gas in Delhi.

He noted that the projected loss of Rs 45,478 for this year was calculated on refinery gate prices in the first fortnight of December.

"The minister further said the oil marketing companies are backbone of the country's energy security, hence their health is a cause of concern for us," said a ministry statement.

According to him, when global oil prices touched record highs during the last financial year, the government had provided the oil companies financial support of Rs 106,000 crore.

"However, this kind of subsidy support is not sustainable in the long run," he added.

The expert group constituted for suggesting sustainable pricing policy is expected to submit its report in January, based on which the government will consider suitable pricing policy initiatives, Deora said.