Oil Marketing Companies are thus bearing significant losses on diesel under recoveries, thanks in a large measure to the sharp depreciation in the rupee against the dollar. There were reports that there may be a steep one time hike of Rs 3 in diesel prices.
In the case of PDS Kerosene and Domestic LPG, under-recoveries for the month of August 2013 remains same at Rs 33.54 per litre and Rs 412 per cylinder respectively since it is computed on monthly basis on these products.
OMCs, effective 16th August 2013, are incurring combined daily under-recovery of about Rs 389.00 crore on the sale of Diesel, PDS Kerosene and Domestic LPG. This is higher than daily under-recovery of Rs 379 crore for the previous fortnight effective 1.8.2013.