IOC losing Rs 118 cr per day on subsidised fuel sales

New Delhi, Dec 21 (PTI) State-owned Indian Oil Corp (IOC)
is losing Rs 118 crore a day in revenue on selling diesel,
domestic LPG and kerosene below their imported cost, a company
official said on Tuesday.
"We are losing very heavily on diesel after international
oil prices firmed up to USD 90 a barrel," he said.
Oil prices have risen as freezing weather in the northern
hemisphere has increased energy demand for heating. The spurt
has resulted in the difference between domestic retail and
international benchmark prices widening.
While the Indian government deregulated petrol prices in
June this year, state-owned firms continue to sell diesel,
domestic LPG and kerosene below cost to keep inflation in
check.
The nation's largest fuel retailer is losing Rs 57 crore
per day on diesel alone, while the loss on kerosene and
domestic LPG is Rs 31 crore and Rs 30 crore, respectively, he
said.
IOC is losing Rs 6.09 per litre of diesel, Rs 17.72 per
litre of kerosene and Rs 272.19 per 14.2-kg domestic LPG
cylinder.
"For the full fiscal, at the current level of
international oil prices, IOC will lose Rs 37,815 crore in
revenues," the official said.
Cumulatively, IOC and the two other state-owned oil
marketing companies, Hindustan Petroleum Corp (HPCL) and
Bharat Petroleum Corp (BPCL), are projected to lose Rs 68,361
crore in revenue on subsidised fuel sales in the full 2010-11
fiscal.
A meeting of the Empowered Group of Ministers (EGoM) on
fuel pricing is unlikely to take place on Wednesday as
previously anticipated due to the absence of a couple of
members of the grouping.
A Rs 2 per litre hike in diesel prices was on the agenda
for the EGoM meet, an industry source said. PTI