RK Singh, CMD, BPCL says, in an interview to CNBC-TV18, that the current diesel-price hike will cut underrecovery on diesel by Rs 3.
The current hike in diesel prices should lower the underrecovery on diesel to Rs 2.90 says RK Singh, CMD, Bharat Petroleum Corporation Limited. Speaking to CNBC-TV18, Singh adds that bulk diesel prices would remain unchaged and points out that the PSU has not lost any money on petrol.
Below is the edited transcript of the interview on CNBC-TV18
Q: Have changes been made to bulk diesel prices as well?
A: Bulk diesel prices remain totally deregulated and keep changing automatically every 15 days.
Q: Will petrol prices be hiked as crude markets pick up and move back to above USD 100 per barrel?
A: We review petrol prices every 15 days and as of now there is no underrecovery on petrol. But if crude prices rise abnormally and exchange rates fluctuate, a hike in petrol prices is likely. We will review petrol prices on May 15.
Q: If the Indian crude basket hovers in the US 100-102 range, will your hike petrol prices on May 15?
A: I cannot predict that right now because we take 15 days’ average.
Q: What is the current level of underrecovery? The underrecovery on diesel is down to under Rs 3 per litre, but what is the total under recovery on account of the losses on LPG?
A: The underrecovery on LPG is about Rs 378 per cylinder, on kerosene it is about Rs 27 and diesel it went down to Rs 3.80 and with the current hike, the underrecovery on diesel should come down to Rs 2.90. But in the last 10 days, global diesel prices moved up, so crude prices rose and so did the exchange rate. So, it is difficult to estimate the underrecovery at the end of the month.
Q: Are you not losing money on petrol at the current exchange rate and global crude at USD 102 per barrel?
A: No, we are not losing money on petrol.