State-run oil marketing companies (OMCs) are expected to save 30 per cent of their revenue loss on sale of diesel and LPG during 2013-14 due to falling international oil prices.
According to a media report, the three OMCs-- Indian Oil Corp (IOC), Hindustan Petroleum Corp (HPCL) and Bharat Petroleum Corp (BPCL)—will report around Rs 112,000 crore as revenue loss in FY'14 compared to around Rs 160,000 crore reported during FY'13.
"It (under-recoveries or revenue loss) may come down this fiscal. Earlier it was estimated at Rs 130,000 crore (but) it may be in the range of Rs 112,000 crore as of today," IOC Chairman R S Butola said on sidelines of the CII AGM.
Butola, however, also said that even though prices are falling, but it would be too early to make any correct projection as the new fiscal has just started.
On global crude price, he said, "crude has been subdued for sometimes, but they have not declined. It is USD 109 or 110 per barrel now."
Butola also said that the biggest challenge for the industry remains pricing of the fuel as LPG and kerosene are still sold at subsidized rates while diesel has been partially deregulated and petrol is fully decontrolled.