The Hindu Business Line : IndianOil losing extra Rs 8 cr a day on fuel price cut

State-owned oil marketing company Indian Oil Corporation Ltd (IndianOil) said on Wednesday that it was facing an extra burden of Rs 8 crore per day due to recent fuel price cut. "We are losing an additional Rs 8 crore a day on sale of petroleum products after the recent price cut. Our total revenue loss per day is now close to Rs 53-54 crore," Mr Sarthak Behuria, Chairman and Managing Director, IndianOil, said.

The Government reduced prices of two petroleum products - petrol and diesel - by Rs 2 per litre and Re 1 a litre on November 29. The company is losing Rs 2.1 per litre on sale of diesel, Rs 132 per cylinder on cooking gas, and Rs 13.81 per litre on sale of kerosene. However, the company is making a profit of Rs 1.67 a litre on sale of petrol while it was about Rs 4 per litre prior to the price cut.

The industry would be losing close to Rs 100 crore per day. IndianOil, with the largest market share among the oil marketing companies, is suffering more under-realisation on sale of these products.

Besides, the company has also started refunding the discount amount to the standalone public and private refiners such as Reliance Industries Ltd, Mangalore Refinery and Petrochemicals Ltd, and Chennai Petroleum Corporation Ltd. The standalone refiners extended discounts to the OMCs on domestic liquefied petroleum gas and kerosene sold under the public distribution system.

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