IOC loses Rs. 38k-cr a year on fuel sales
New Delhi   02-Dec-2010

State owned IndianOil (IOC) is losing Rs. 105 crore a day in revenues on selling of auto and cooking fuel below imported costs, a company official said today.

"Global oil prices have firmed up in the last fortnight, widening the difference between domestic retail prices and their international benchmark," he said. While the government has de-regulated petrol price from June this year, state-owned firms continue to sell diesel, domestic LPG and kerosene below cost to keep inflation under check.

The nation's largest fuel retailer was losing Rs. 88 crore per day on sale of diesel, domestic LPG and kerosene in the second fortnight of November.

That revenue loss was based on average international price in the first fortnight of November. But today when we calculate the desired retail price based on the average price in the second fortnight of November, we are losing Rs. 105 crore per day," the official said.

IOC is losing Rs. 4.63 per litre on diesel, Rs. 17.72 per litre on kerosene and Rs. 272.19 per 14.2-kg domestic LPG cylinder.

"For the full fiscal, at current level of international oil prices, IOC will lose Rs. 36,464 crore in revenues," the official said. IOC is losing Rs. 40 crore per day in revenues on sale of diesel, Rs. 34 crore a day on kerosene and Rs. 31 per day on domestic LPG.

It along with other state fuel retailers, Hindustan Petroleum and Bharat Petroleum is projected to lose Rs. 65,839 crore revenues in the full 2010-11 fiscal. The three retailers in the second fortnight lost Rs. 3.85 per litre on diesel, Rs. 16.50 a litre on kerosene and Rs. 209.94 per domestic LPG cylinder.

At that level, IOC was projected to lose Rs. 34,238 crore in revenues in full fiscal and the three state retailers Rs. 61,634 crore.