IOC losing Rs 237 cr a day
New Delhi   18-Feb-2011

IndianOil (IOC) is losing a record Rs 237 crore per day on selling auto and cooking fuel below cost as government continues to bar it from raising rates in line with spurt in raw material cost.

“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 10.74 per litre on diesel, the highest ever.

Besides diesel, the three firms are losing Rs 21.60 on every litre of kerosene and Rs 356.07 per 14.2-kg on LPG cylinder.
"The industry as a whole is losing about Rs 430 crore per day," he said.

Oil minister S Jaipal Reddy had earlier this week ruled out any increase in fuel prices despite crude oil prices touching a two-year high of $100 per barrel.

For 2010-11, the three are projected to lose Rs 76.559 crore in revenues at present prices, the official said, adding that IOC alone is projected to lose Rs 42,233 crore in revenues.

The official said IOC is losing Rs 136 crore per day on diesel sales, Rs 47 crore on kerosene and Rs 54 crore a day on LPG sales.