With a 12 per cent drop in rupee value against the US dollar making imports costlier,state-
owned oil firms have demanded a one-time steep increase in diesel rates to bridge the widening losses.
Losses on sale of diesel at government controlled rates,had dropped to under Rs 3 per litre in May following monthly increases of up to 50 paise a litre. But with the rupee depreciating against the US dollar,the losses have widened to Rs 10.22 per litre.
We had requested the government for an increase in prices on ad-hoc basis. The decision on the increase rests with the government. The government of India has to take a decision on it. I have no comments on it, said PK Goyal,director (finance) Indian Oil Corp.
Losses on diesel sales have widened to Rs 10.22 from Rs 9.29 a litre in the beginning of the month. Besides diesel,the oil companies are losing Rs 33.54 per litre on kerosene and Rs 412 per domestic LPG cylinder.
Goyal said the total revenue loss or under- recoveries on diesel and cooking fuel was estimated at Rs 80,000 crore at the beginning of the fiscal,which have now widened to Rs 1.4 lakh crore.
Oil retailers to get R8K cr on Sept 17
New Delhi: State-owned fuel retailers are likely to get Rs 8,000 crore cash subsidy on September 17 to make up for less than a third of losses they incurred on selling diesel and cooking fuel below cost during the first quarter.
We have been told that the first quarter compensation will come on September 17, said PK Goyal,director (finance),Indian Oil Corp. The subsidy sanctioned is far short of the Rs 11,451 crore the oil ministry has sought. PTI