Drop in crude prices marginally relieve oil firms

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The drop in international oil prices has led to a marginal decline in the revenue loss suffered by state-run oil companies on fuel sales to Rs 350 crore per day.

Last month, Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum were losing Rs 390 crore per day on sale of petrol, diesel, kerosene and domestic LPG. This month, losses have come down to Rs 352 crore per day, an industry official said.

Companies are still losing Rs 5.57 per litre on sales of petrol, Rs 12.95 on diesel, Rs 29.19 on kerosene and Rs 335.03 per LPG cylinder.

The official said the three companies together are projected to lose Rs 1,62,158 crore on fuel sales during the current fiscal.

Petroleum Minister Murli Deora had ruled out an immediate cut in retail prices as the oil companies were still losing money on fuel sales.

The basket of crude oil that India buys averaged USD 93.55 per barrel in the second fortnight of September, based on which the current revenue losses have been calculated. The Indian basket had averaged USD 103.66 per barrel in the first fortnight of September.

Deora yesterday said retail prices would be cut only if crude falls to USD 67 per barrel.

The official said the projected revenue loss for the fiscal is marginally down from Rs 1,63,497 crore calculated based on the average of first fortnight of September.

Till yesterday, the three firms were losing Rs 5.21 per litre on petrol, Rs 11.55 on diesel, Rs 30.12 per litre on kerosene and Rs 300.56 on LPG cylinder.