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New Delhi, May 6

With continued volatility in the crude prices, the revenue losses suffered by the public sector oil marketing companies (OMCs) for selling petroleum products below the cost price are also increasing. The basket on Monday hit a new high of $ 112.56 a barrel. The three OMCs – Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation – combined were estimated to incur a revenue loss of Rs 475-500 crore a day. IOC alone was losing ab out Rs 275 crore a day on sale of four petroleum products –petrol, diesel, LPG and kerosene – below the cost price. The under recovery on sale of petrol stood at Rs 14 a litre, diesel Rs 21 a litre, kerosene Rs 28.72 a litre and LPG Rs 306 a cylinder. The Indian crude oil basket has averaged $110.17 a barrel so far this month. In April, the basket averaged $105.77.

The gross under recoveries of the OMCs for the year 2007-08 are estimated to be Rs 77,303 crore. With the crude basket continuing above the $100-a barrel mark, projected revenue loss is about Rs 1,50,000 crore on fuel sales this fiscal.

— Our Bureau

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