Oil PSUs to lose over Rs 180,000 cr on fuel sales this fiscal

Oil PSUs to lose over Rs 180,000 cr
Oil marketing public sector units (PSU) Indian Oil, Bharat Petroleum and Hindustan Petroleum, who are selling fuel at subsidized rates, are projected to lose a over Rs 1,80,000 crore on fuel sales this fiscal amidst increasing crude oil prices, if fuel prices are not increased.

The revenue loss will be higher than the loss in 2008-09 when crude touched a record high of USD 147 a barrel.

Commenting on the issue, an industrial official said, "at current international crude oil prices lose Rs 180,208 crore in revenues on selling diesel, domestic LPG and kerosene below their imported cost in 2011-12 fiscal."

He also added that, "Losses on petrol are not included in the under-recovery figures for 2011-12 as it is a decontrolled commodity."

The three oil firms now lose a record Rs 18.19 per litre on diesel, Rs 29.69 a litre on kerosene and Rs 329.73 per 14.2 kg domestic LPG cylinder. In addition, they lose about Rs 7.50 per litre on petrol, whose rates have not moved in tandem with the imported cost despite its pricing being freed from the government control in June last year.

Read more about: psu, oil and gas
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