IOC losing Rs 105 cr due to fuel sale below cost price: Official
State-owned Indian Oil Corp is losing Rs 105 crore a day in revenues on selling of auto and cooking fuel below imported costs, a company official said on Wednesday.business Updated: Dec 01, 2010 15:18 IST
State-owned Indian Oil Corp (IOC) is losing Rs 105 crore a day in revenues on selling of auto and cooking fuel below imported costs, a company official said on Wednesday.
"Global oil prices have firmed up in the last fortnight, widening the difference between domestic retail prices and their international benchmark," he said.
While the government has de-regulated petrol price from June 2010, state-owned firms continue to sell diesel, domestic LPG and kerosene below cost to keep inflation under check.
The nation's largest fuel retailer was losing Rs 88 crore per day on sale of diesel, domestic LPG and kerosene in the second fortnight of November.
"That revenue loss was based on average international price in the first fortnight of November. But today (Wednesday) when we calculate the desired retail price based on the average price in the second fortnight of November, we are losing Rs 105 crore per day," the official said.
IOC is losing Rs 4.63 per litre on diesel, Rs 17.72 per litre on kerosene and Rs 272.19 per 14.2-kg domestic LPG cylinder.
"For the full fiscal, at current level of international oil prices, IOC will lose Rs 36,464 crore in revenues," the official said.
IOC is losing Rs 40 crore per day in revenues on sale of diesel, Rs 34 crore a day on kerosene and Rs 31 per day on domestic LPG.
It along with other state fuel retailers, Hindustan Petroleum and Bharat Petroleum is projected to lose Rs 65,839 crore in revenues in the full 2010-11 fiscal.
The three retailers in the second fortnight lost Rs 3.85 per litre on diesel, Rs 16.50 a litre on kerosene and Rs 209.94 per domestic LPG cylinder.
At that level, IOC was projected to lose Rs 34,238 crore in revenues in full fiscal and the three state retailers Rs 61,634 crore.