Diesel Under-Recovery at Rs 9.99/litre marginally higher than Rs 9.69/ litre in previous Fortnight

Daily Under-Recovery of Rs 429 crore effective from 1 December 2013

The Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas has reviewed international prices of crude oil and petroleum products during the 2nd fortnight of November 2013. Accordingly, the under-recovery on High Speed Diesel (HSD) applicable for 1st fortnight of December effective 01 December 2013 rose to Rs 9.99 per/litre. This was Rs 9.69 per litre during 2nd fortnight of November 2013 with effect from 16 November 2013. In the case of PDS Kerosene and Domestic LPG also, the under-recoveries for the month of December 2013 increased to Rs 36.20 per litre and Rs 542.71 per cylinder respectively against under-recoveries of Rs 35.77 per litre and Rs 482.41 per cylinder respectively during November 2013.

Product-wise Under-recoveries of Public Sector Oil Marketing Companies (OMCs):

Product Unit Under-recoveries effective 1.12.2013 (Previous fortnight effective 16.11 2013)Diesel Rs/Litre 9.99 (9.69)PDS Kerosene* Rs/Litre 36.20 (35.77) Domestic LPG* Rs/Cylinder 542.71 (482.41)

*Additionally, a subsidy of Rs 0.82/Litre on PDS Kerosene and Rs 22.58/Cylinder on Domestic LPG is provided by the Government and their refinery-gate prices are fixed on monthly basis.

Oil Marketing Companies (OMCs), effective 01 December 2013, are now incurring combined daily under-recovery of about Rs 429 crore on the sale of Diesel, PDS Kerosene and Domestic LPG. This is a shade more than Rs 422 crore daily under-recoveries during previous fortnight effective 16 November 2013.

Further, the OMC's have reported a total of Rs 60,907 crore as under-recoveries during 1st half of 2013-14 on Diesel, PDS Kerosene, Domestic LPG. Following are product-wise details of the under-recoveries:

Product Under Recovery (Rs/Crore) 2013-14 2012-13 2011-12 2010-11(1sthalf)Diesel 28,266 92,061 81,192 34,706PDS Kerosene 14,057 29,410 27,352 19,484Domestic LPG 18,585 39,558 29,997 21,772Petrol -- -- -- 2,227Total 60.907 1,61,029 1,38,541 78,190

The international crude oil price of Indian Basket, as computed/published today by PPAC, went down marginally to US$ 109.35/per barrel (bbl) on 29 November 2013. This is lower than the price of US$ 109.68/bbl which prevailed on the previous trading day of 28 November 2013.

In rupee terms also, the crude oil price declined marginally to Rs 6822.35 per bbl on 29 November 2013 as compared to Rs 6842.94 /bbl on 28 November 2013. This was due to fall in price in dollar terms. Rupee-dollar exchange rate on 29 November 2013 remained unchanged at Rs 62.39/US$ as prevalent on previous trading day of 28 November 2013.

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