Loss on diesel sales declines to Rs 7.16 a litre

Tags: Petroleum
The loss on sales of diesel has been trimmed by more than Re 1 to Rs 7.16 per litre on the back of softening international oil rates.

Public sector oil firms Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp are losing Rs 7.16 on every litre of diesel sold in the second fortnight of March, down from Rs 8.37 a litre in the first half of the month, an official statement issued here said.

The basket of crude oil that India buys has dropped to USD 105.36 per barrel from USD 106.18.

Losses have also been trimmed because of the monthly increases of 50 paise a litre of diesel, excluding local sales tax or VAT. Since January 2013, diesel rates have risen by a cumulative Rs 8.33.

Besides diesel, oil firms are losing Rs 36.34 per litre on kerosene sold through the public distribution system, up from Rs 35.76 a litre last month. On cooking gas (LPG), the revenue loss or under-recovery has come down to Rs 605.80 per 14.2-kg cylinder from Rs 655.96 in February.

Oil marketing companies are now incurring a combined daily under-recovery of Rs 399 crore on the sale of diesel, PDS kerosene and domestic LPG compared with Rs 411 crore daily during the previous fortnight, the statement said.

The three firms had together lost Rs 1,00,632 crore on the sale of the three products in April-December and may end the financial year with a total under-recovery of about Rs 1,40,000 crore. This compares with an under-recovery of Rs 1,61,029 crore in 2012-13 and Rs 1,38,541 crore in the previous fiscal.

The statement said during the current financial year, oil firms lost Rs 47,655 crore on sale of diesel at rates lower than cost and another Rs 30,604 crore on domestic LPG. They incurred an under-recovery of Rs 22,373 crore on the sale of kerosene, it added.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Banks might be bracing for intense rate war for retail loans

    While select small banks have been slashing their deposit rates by five to 10 basis points over the past few weeks for short term adjustments to avoid

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Varun Dutt

<b>Riskfactor</b>: Intertemporal choices

Intertemporal choice is the study of the relative value people ...

Parvez Imam

Why we all have blood on our hands

What does the Jammu and Kashmir flood make us think? ...

Dharmendra Khandal

The peculiar possibilities of animal poop

You can tell a lot about an animal by its ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture