Sujay Mehdudia
But government has no plans to cut retail fuel prices
NEW DELHI: Loss making oil companies have started making profit on sale of petrol for the first time in almost a year’s time. This development is unlikely to bring any relief to the common man as the government has no plans to cut retail fuel prices.
Despite this, the Government is pleading that the Oil Marketing Companies(OMCs) continue to making huge losses of over Rs. 155 crore per day on sale of diesel, domestic LPG and kerosene. “Margins of petrol will turn positive from Saturday.
Based on the average oil price of second fortnight of October, we expect to make Rs. 4.12 a litre margin, Indian Oil Corporation (IOC) Chairman, Sarthak Behuria told journalists .
The same goes for Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited. But these companies will continue to make losses on diesel, domestic LPG and kerosene.
Mounting losses
Mr. Behuria said losses on diesel will come down to Rs. 0.96 per litre. On kerosene we continue to lose Rs. 22.40 per litre and on LPG the losses stand at Rs. 343.49 per cylinder. “IOC continues to lose Rs. 85 crore per day on sale of diesel, kerosene and LPG. We will make about Rs. 6 crore on petrol but overall our losses on fuel sales stand at Rs. 79 crore per day,” he added.
Mr. Behuria said there was no case for a cut in fuel prices till the losses existed.
IOC posted its largest ever net loss of Rs. 7,047.13 crore in July-September quarter. BPCL posted a net loss of Rs. 2,625.17 crore in second quarter on top of Rs. 1,066.70 crore in April-June.
HPCL ended Q1 with a loss of Rs. 888.12 crore and another Rs. 3,218.92 crore net loss in the second quarter ended September 30.
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