Consumers will have to pay Rs 14.29 per litre more for diesel if the government decides to deregulate its retail pricing and benchmark the fuel to international market prices. As per a review by the Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas have reviewed international prices of crude oil and petroleum products during the first fortnight of April 2012.
Accordingly,the under-recoveries on HSD (High Speed Diesel) applicable for 2nd fortnight of April has remained high at Rs 14.29/litre effective April 16,2012. This was,though,marginally lower than Rs 14.36/litre in the previous fortnight. The under-recoveries on Domestic LPG at Rs 570.50/cylinder and on PDS Kerosene at Rs 31.04/Litre are same for the current fortnight as OMCs compute/calculate under-recoveries on monthly basis in the case of Domestic LPG and PDS Kerosene.
Oil marketing companies – IOC,HPCL,BPCL – are currently (effective 16 April,2012) incurring daily under-recovery of about Rs 562 crore on the sale of Diesel,PDS Kerosene and Domestic LPG.