OMCs 1st half under-recovery pegged at Rs 16k cr

Written by Sanjay Jog | New Delhi | Updated: Nov 6 2009, 05:09am hrs
The Centre has pegged the combined under-recovery of three oil marketing companies (OMCs)IOC, HPCL and BPCL at Rs 15,856 crore for the first-half of the current financial year. The combined under recovery, which was estimated at Rs 85,000 crore by the end of 2008-09, dropped due to substantial decrease in crude prices at around $80 per barrel compared to $142 per barrel in July 2008.

Petroleum ministry sources told FE the government would soon take a decision on issuance of oil bonds. Meanwhile, the Centre has ruled out any hike in auto fuel prices, despite crude oil prices hovering around $80 per barrel.

The ministrys estimates of under-recovery come at a time when OMCs have been able to lower their losses due to dip in crude prices during the second quarter of the current fiscal. OMCs have been quite eager for an early issuance of oil bonds for their survival.

IOCs under-recovery on account of non-realisation of market-related prices for PDS kerosene and LPG for the Q2 stood at Rs 4,175 crore. IOC registered a PAT of Rs 284 crore for the Q2 of this fiscal ended September 30, 2009, as compared to a loss of Rs 7,047 crore for the same period of the last year. IOC was to get oil bonds worth Rs 7,136 crore.

Further, BPCL losses in the July-September quarter narrowed to Rs 158.77 crore from Rs 2,625.27 crore a year ago. BPCL was to get Rs 2,206 crore in oil bonds to make up for the losses it incurred on selling domestic cooking gas (LPG) and kerosene below the cost.

As far as HPCL is concerned, its standalone net loss stood at Rs 3,218.92 crore versus net profit of Rs 853.03 crore on y-o-y basis. Its subsidy claim for first half towards sale of LPG, SKO (kerosene-PDS) stood at Rs 281 crore against Rs 267.5 crore.