Oil firms FY09 losses to be 13% lesser than estimates

Indian Oil, Hindustan Petroleum and Bharat Petroleum are projected to lose Rs 1,28,135 crore on fuel sales this fiscal, 13 per cent lower than previously anticipated revenue loss as a fall in international oil prices has brought some relief.

The fall in global crude prices has seen the projections for revenue loss on sale of petrol, diesel, domestic LPG and kerosene being lowered from Rs 1,47,592 crore, anticipated last month, to Rs 1,28,135 crore now, an industry official said.

IOC, BPCL and HPCL lost Rs 92,853 crore on fuel sales (audited figures) in April-September and they are projected to lose Rs 35,282 crore in the second half of 2008-09 fiscal.

For the first time in more than 12 months, oil companies have started making profit on sale of petrol, but they continue to lose Rs 155 crore per day on diesel, LPG and kerosene sales.

The three firms, based on the average price of second fortnight of October, are making Rs 4.12 a litre profit on petrol sale. But they are losing Rs 0.96 a litre on diesel, Rs 22.40 per litre on kerosene and Rs 343.49 per LPG cylinder.

But the companies say retail fuel prices should not be cut till losses on diesel are wiped out and those on LPG and kerosene reduced substantially.

"We continue to lose Rs 13 crore per day on diesel sales, Rs 87 crore on kerosene and Rs 59 crore per day on LPG sale. The losses will widen if prices are reduced now," he said.

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, while HPCL reported Rs 888.12 crore loss in Q1 and another Rs 3,218.92 crore in Q2.