This would bring the state-run company's total losses this fiscal year to 120 billion rupees.

Last week, the government allowed companies to raise the price of petrol by 6 per cent and diesel by 9 per cent, but oil firms say they are still selling the fuels below global prices, with the US crude benchmark surging about 60 per cent in the current year.

"Our revenue loss will be 48 billion rupees due to low prices of kerosene and LPG, and 13 billion rupees due to diesel," said an IOC official, who did not want to be named.

In April-October, the first seven months of the fiscal year ending March 2005, IOC suffered a revenue loss of 43 billion rupees on account of kerosene and LPG, and 16 billion rupees because of petrol and diesel, he said.

He said oil firms needed funds to improve their retail networks and to invest in facilities to make cleaner fuels.

"To meet the environment norms, Indian refineries have already invested 120 billion rupees ($2.7 billion) and are in the process of investing another 180 billion rupees ($4 billion)," he said.

IOC owns or controls 10 of India's 19 refineries. The country imports 70 per cent of its crude oil requirement.

The government had frozen retail prices of fuels between Aug 1 and Nov 4 despite soaring global prices.

The coalition government has allowed only moderate oil price increases as it wants to control inflation and is facing vociferous protests from its leftist allies.

Communist allies, who provide crucial support to the ruling coalition, have asked the government to reduce fuel prices and have staged several protests.

India's oil minister, Mani Shankar Aiyar, said late on Monday the government could respond to demands from the communist parties only after Prime Minister Manmohan Singh returns from Europe on Wednesday.

IOC shares lost 0.92 per cent on Tuesday to Rs 469.5, but had risen 18 per cent in the last three months.