IOC loses Rs 189 cr a day due to under-recoveries
New Delhi   03-Feb-2011

Government-owned IndianOil (IOC) on Wednesday said it is losing Rs 189 crore per day on selling auto and cooking fuel below cost as global crude oil prices shot up to $102 per barrel.

"The spike in global prices has widened the gap between the retail selling price and their cost," an IOC official said.

IOC, and its sister public sector retailers Hindustan Petroleum and Bharat Petroleum, are losing a whooping Rs 9.23 per litre on diesel, the highest ever.

Besides diesel, the three firms are losing Rs 21.60 per litre of kerosene and Rs 356.07 per 14.2-kg on LPG cylinder. "The industry as a whole is losing about Rs 345 crore per day," he said.

Unrest in Egypt fuelled Brent crude price to an intraday high of $102.08 per barrel on Wednesday, its highest level since late September 2008 after the Lehman Brothers bankruptcy sent financial markets into a tailspin.