PSUs may suffer Rs 15,000 cr revenue loss in FY'10

Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum may suffer over Rs 15,000 crore revenue loss on fuel sales this fiscal, Petroleum Secretary R S Pandey said today.

"At current crude prices, oil marketing companies are likely to end 2009-10 fiscal with over Rs 15,000 crore under-recovery (revenue loss) against Rs 1,03,292 crore of the previous year," he said addressing the India Energy Forum here.

Pandey said the retailers were currently incurring loss on sale of petrol, domestic LPG and kerosene while they made a small profit on diesel sales. They sell petrol at a loss of Rs 1.80 per litre, kerosene at Rs 12.27 per litre and LPG at a loss of Rs 91.51 per cylinder. On diesel, however, they make Rs 1.19 a litre profit.

The three firms lose Rs 48 crore per day on fuel sales.

IOC, BPCL and HPCL incurred revenue loss of Rs 1,03,292 crore on sale of auto and cooking fuel in 2008-09. Of this, Rs 32,000 crore was met by upstream firms like Oil and Natural Gas Corporation by way of discount on crude oil they sell to the three firms.

Besides, government issued the three retailers Rs 60,967 crore worth of oil bonds.

Pandey indicated more bonds would be issued so that none of the firms end the year in loss. Indications are that the size would around Rs 10,300 crore.

"Full oil bonds have not yet been given (and after they are issues), none of the oil marketing companies will be in loss (in 2008-09)," he said.