Losses on sale of subsidised LPG and kerosene have dropped by 21 per cent to Rs 148 crore per day as international oil rates hit a five-year low.
State-owned fuel retailers are losing Rs 25.69 on sale of every litre of kerosene through the Public Distribution System (PDS) and Rs 279.91 per 14.2-kg domestic cooking gas, an official statement said here on Monday.
These are lower than Rs 27.60 a litre loss oil firms were incurring on sale through PDS in November, and Rs 393.50 per LPG cylinder.
“Oil marketing companies (OMCs), effective December 1, 2014, are now incurring combined daily under-recovery of about Rs 148 crore on the sale of PDS kerosene and domestic LPG. This is lower than Rs 188 crore daily under-recoveries during previous month,” it said.
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 half of current fiscal was Rs 51,110 crore. “The figure was Rs 139,869 crore for full year in the 2013-14.”
While the government had freed pricing of petrol from its control in June 2010, diesel was deregulated on October 18. Since then, diesel rates have been cut thrice – first by Rs 3.37 a litre on October 19, then by Rs 2.25 per litre from November 1 and by 84 paisa from Monday.