Higher crude oil price and a weaker rupee has led to an increase of over 10% in diesel losses for the three government-oil companies. Loss on domestic LPG also rose nearly 9%, while the loss on kerosene came down marginally.
According to the government data released today, diesel loss has again touched double-digits at Rs 10.03 per litre in the current fortnight against Rs 9.06 in the previous one.
This loss is in spite of the Rs 5 hike in diesel in mid September. The loss on subsidised domestic cooking gas (up to six per consumer) has also increased from Rs 478.50 to Rs 520.50 a cylinder. However, loss on kerosene has come down from Rs 31.30 to Rs 30.93 a litre. The prices of these three products are regulated by the government.
The increase is a big negative for the oil companies- IndianOil, Bharat Petroleum and Hindustan Petroleum-who have already incurred a total revenue loss (underrecovery) of Rs 85,586 crore on the three products in the first half of the fiscal. Their daily loss on the three products has rose to Rs 420 crore from Rs 412 crore in last fortnight.
The higher loss has come on account of an increase in crude oil price from $106.69 per barrel in first fortnight of November to $108.94 in second fortnight, causing increase in global prices of these products. Rupee also weakened from Rs 54.34 against a US dollar to Rs 55.17.