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Oil firms' revenue loss at $6.46bn: Source
India's state-run oil companies reported a revenue loss of 340 billion rupees in the third quarter ending December 31 for selling subsidised fuel, an industry sources said on Monday.
India's state-run oil companies reported a revenue loss of USD 6.46 billion rupees (Rs 33920 crore) in December quarter for selling subsidised fuel, an industry sources said on Monday.
At USD 6.4 billion, the bulk of under-recovery was that of Indian Oil Corporation (IOC) , its director finance PK Goal told reporters.
State run oil retailers like Bharat Petroleum, Hindustan Petroleum and IOC are required to purchase crude from international markets in dollars and sell finished petroleum products like diesel, kerosene and liquefied petroleum gas (LPG) at government-controlled prices.
The government subsidises 1/3rd of the under-recoveries on account of selling fuel below the market price and oil companies have to absorb the rest as losses. HPCL, BPCL and IOC have been demanding de-regulation of diesel, kerosene and LPG since last year, but there has been no clarity on the issue.
Though petrol has been de-regulated since June 2010, companies have hiked petrol price hardly twice since then.
According to the latest data with the government's petroleum planning and analysis cell, oil companies are facing an aggregate under-recovery of Rs. 388 crore a day on sales of diesel, kerosene and LPG. Between April and September, such under-recoveries totalled Rs. 64,900 crore.
