State-owned oil firms companies lose a whopping over Rs 1,80,000 crore on fuel sales this fiscal if domestic retail prices are not hiked in step with the cost of raw material.
Indian Oil, Bharat Petroleum and Hindustan Petroleum will “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”, an industry official said.
The revenue loss, termed as under-recovery by oil firms, will be the highest ever, even more than what they lost in 2008-09 when crude touched a record high of USD 147 a barrel.
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.
“Losses on petrol are not included in the under-recovery figures for 2011-12 as it is a decontrolled commodity,” the official said.
