Public sector oil firms Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp are now losing R7.16 on every litre of diesel sold, down from R8.37 a litre in the first half of the month, an official statement said.
The basket of crude oil that India buys has dropped to $105.36 per barrel from $106.18.
Losses have also been trimmed because of the monthly increases of 50 paise a litre of diesel, excluding local sales tax or VAT. Since January 2013, diesel rates have risen by a cumulative R8.33.
Besides diesel, oil firms are losing R36.34 per litre on kerosene sold through the public distribution system, up from R35.76 a litre last month. On cooking gas (LPG), the revenue loss or under-recovery has come down to R605.80 per 14.2-kg cylinder from R655.96 in February.
Oil marketing companies are now incurring a combined daily under-recovery of R399 crore on the sale of diesel, PDS kerosene and domestic LPG compared with R411 crore daily during the previous fortnight, the statement said.
The three firms had together lost R1,00,632 crore on the sale of the three products in April-December and may end the financial year with a total under-recovery of about R1,40,000 crore. This compares with an under-recovery of R1,61,029 crore in 2012-13 and R1,38,541 crore in the previous fiscal.
The statement said during the current financial year, oil firms lost R47,655 crore on sale of diesel at rates lower than cost and another R30,604 crore on domestic LPG. They incurred an under-recovery of R22,373 crore on the sale of kerosene, it added.