Sops costing oil companies Rs 90,000 cr

With crude oil prices peaking up to $83 a barrel mark, the petroleum ministry has raised fears that under-recoveries of state-owned oil marketing firms (selling fuel below the cost price) may touch Rs 90,000 crore during 2010-11.

With crude oil prices peaking up to $83 a barrel mark, the petroleum ministry has raised fears that under-recoveries of state-owned oil marketing firms (selling fuel below the cost price) may touch Rs 90,000 crore during 2010-11.

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Reacting to high global crude oil prices, Petroleum Secretary S Sundareshan expressed concerns over the hike in prices, which he said would mean further revenue losses for oil firms.

“The under-recoveries of public sector oil companies at these price levels would touch Rs 90,000 crore,” he said on the sidelines of the 12th International Energy Forum.