IOC losing Rs 172 cr per day on sale of fuels

Written by Agencies | New Delhi, January 31: | Updated: Jan 31 2008, 22:14pm hrs
Indian Oil Corp said it is losing Rs 172 crore per day on sale of auto and cooking fuels and hoped that the government would raise prices next week.

"Our losses on petroleum is Rs 10.57 per litre, Rs 11.56 on diesel, Rs 19.89 on kerosene and Rs 331 on each LPG cylinder," IOC Chairman Sarthak Behuria told reporters.

Behuria said he met Petroleum Minister Murli Deora after this morning's meeting of the GoM on fuel prices and was hopeful that a decision would be taken next week.

"We want a combination of a marginal fuel price increase, cut in excise duties and an increase in oil bonds by the government to subsidise the fuels," he said.

Currently, the government gives 42.7 per cent of the total under realisation on the four fuels as oil bonds and another 33 per cent is borne by upstream companies like ONGC and Gail India.

"At the current level of oil bonds and upstream subsidy sharing, we may end up with a net loss of Rs 9,000-10,000 crore on the sale of the four porducts," he said.

Behuria said the current fuel prices are pegged at 56 dollars a barrel crude oil price while the ruling price now is over 90 dollars a barrel.

After the GoM, Deora said the Union Cabinet is likely to decide next week raising petrol and diesel prices and a possible rejig in duties to contain the impact of surging international crude oil prices.

Four of the seven-member Group of Ministers on fuel prices, headed by External Affairs Minister Pranab Mukherjee, met this morning and decided to leave the final decision to the Cabinet, he said.