Losses on LPG, kerosene sale lower by over 30 pc

By: | Updated: February 2, 2015 7:09 PM

Losses on sale of subsidised LPG and kerosene have dropped by over 30 per cent as international oil rates plunged to multi-year lows.

LPG, kerosene, LPG sale, kerosene sale, LPG sale lossesAfter diesel price was deregulated on October 18, only two products remain subsidised. (Reuters)

Losses on sale of subsidised LPG and kerosene have dropped by over 30 per cent as international oil rates plunged to multi-year lows.

State-owned fuel retailers are losing Rs 13.32 on sale of every litre of kerosene through the Public Distribution System (PDS) and Rs 161.81 per 14.2-kg domestic cooking gas, an official statement said here today.

These are lower than Rs 19.46 a litre loss oil firms were incurring on sale through PDS last month, and Rs 235.91 per LPG cylinder.

After diesel price was deregulated on October 18, only two products remain subsidised.

The statement said the under-recovery or the revenue loss incurred on selling fuel below cost, in the first nine months of current fiscal was Rs 67,091 crore. “The figure was Rs 139,869 crore for full year in the 2013-14.”

Of this, three oil marketing companies, Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL), reported an under recovery of Rs 51,109.53 crore during the first half of 2014-15.

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