Under-recoveries cost Indian Oil Rs297 crore a day
20 Apr 2011
State-owned Indian Oil Corporation (IOC) is suffering a loss of Rs297 crore per day on selling diesel, domestic LPG and kerosene at government-controlled rates, a company official.
He said the company was losing Rs18.11 per litre on diesel, Rs28.33 a litre on kerosene and Rs315.86 per 14.2-kg domestic LPG cylinder.
IOC loses Rs196 crore everyday on sale of diesel below its imported cost. Additionally, the company loses Rs53 crore on kerosene and Rs48 crore on domestic LPG.
Diesel prices were last revised in June last year. At the time crude oil was selling at $71-72 a barrel, which has risen to $110 a barrel while domestic LPG and kerosene rates were also revised last in June 2010.
Meanwhile, oil companies have not been allowed to raise fuel prices in line with imported cost to rein in inflation.
According to the official retail selling price of diesel in the capital should have been around Rs55.86 a litre as against Rs 37.75 per litre currently.