PSU OMCs gain after diesel under-recovery declines

Two out of three PSU OMCs rose by 0.97% to 1.85% at 13:00 IST on BSE after the under-recovery on High Speed Diesel fell 14.46% to Rs 7.16 per per litre in the second fortnight of March effective 16 March 2014.

BPCL (up 1.85%) and HPCL (up 0.97%), edged higher.

However, Indian Oil Corporation was down 0.28%.

The S&P BSE Sensex was up 23.45 points, or 0.11% at 21,856.06.

In the case of PDS Kerosene and Domestic LPG, the under-recoveries for the month of March 2014 remains unchanged at Rs 36.34 per litre and Rs 605.80 per cylinder respectively as their refinery gate prices are determined on monthly basis, Ministry of Petroleum said in statement on Tuesday, 18 March 2014.

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 first fortnight of March 2014. Oil Marketing Companies (OMCs), effective 16, March 2014, are now incurring combined daily under-recovery of about Rs 399 crore on the sale of Diesel, PDS Kerosene and Domestic LPG. This is lower than Rs 411 crore daily under-recoveries during previous fortnight effective 1 March 2014.

PSU OMCs (public sector oil marketing companies) suffer under-recovery on domestic sales of diesel, kerosene and LPG at government controlled prices.

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