IOC losing Rs 118 cr per day on subsidised fuel sales
New Delhi   22-Dec-2010

IndianOil (IOC) is losing Rs 118 crore a day in revenue on selling diesel, domestic LPG and kerosene below their imported cost, a company official said ON Tuesday. "We are losing very heavily on diesel after international oil prices firmed up to $90 a barrel," he said. Oil prices have risen as freezing weather in the northern hemisphere has increased energy demand for heating.

The spurt has resulted in the difference between domestic retail and international benchmark prices widening. While the government deregulated petrol prices in June this year, state-owned firms continue to sell diesel, domestic LPG and kerosene below cost to keep inflation in check. The nation's largest fuel retailer is losing Rs 57 crore per day on diesel alone, while the loss on kerosene and domestic LPG is Rs 31 crore and Rs 30 crore, respectively, he said. IOC is losing Rs 6.09 per litre of diesel, Rs 17.72 per litre of kerosene and Rs 272.19 per 14.2-kg domestic LPG cylinder.