Under-recovery on diesel up at Rs 10.27 per litre

The under-recovery on diesel for the coming fortnight increased from Rs 9.22 per litre for the preceding fortnight of the month

Even after a price rise last week, the under recovery on diesel has now increased to Rs 10.27 per litre, the ministry of petroleum and natural gas said today.

According to the Petroleum Planning and Analysis Cell (PPAC), under the petroleum ministry,  the under recovery on diesel applicable for the second fortnight effective on February 16 has increased to Rs 10.27, compared to Rs 9.22 per litre for the first fortnight of the month, as on February 11.

Oil marketing companies had opted for the second dose of diesel decontrol on Feburary 15. An Indian Oil Corporation (IOC)
statement after the hike of 45 paise on diesel, due to an uptrend in international pricing during the period after January 17, the under recovery on diesel had ebven gone up to Rs 10.72 per litre.

Meanwhile, in case of domestic LPG and kerosene, under-recoveries remain same at Rs 481 per cylinder and Rs 31.60 per litre respectively for February 2013, as under-recoveries on these products are computed on monthly basis.

Oil companies are incurring a daily under-recovery of about Rs 454  crore on the sale of diesel, kerosene and domestic LPG. “This was Rs 400 crore per day for the previous fortnight effective,” a ministry statement said. As of last trading day, the Indian basket crude oil price stood at $114.49 or Rs 6181.32 per barrel.

Even after decontrol in June 2010, companies are still facing a minor under recovery on petrol. According to IOC chairman R S Butola the company’s under recovery from petrol is at Rs 675 crore now.

However, during the April to December period, the under-recovery from diesel has decreased to Rs 73,815 crore, compared to Rs 81,192 crore during the same period last year. While on kerosene, it has dropped to Rs 21,891 crore during the period, compared to Rs 27,352 crore during the April to December period in 2011-12. Domestic LPG also a minor decline in this regard to Rs 29,148 crore, as against Rs 29,997 crore during the same period last financial year.