Diesel under-recovery declines to Rs.3.80 a litre

The under-recovery or loss on sale of high-speed diesel for the first fortnight of May has been pegged to Rs.3.80 per litre, the petroleum ministry said Wednesday.

According to the ministry, the latest figure of under-recovery was arrived at after its Petroleum Planning and Analysis Cell reviewed international prices of crude oil and petroleum products during the second fortnight of April, in which the under-recovery on diesel was Rs.6.42 per litre.

Under-recoveries on acount of kerosene for public distribution system (PDS) for the month of May 2013 is assessed to decline to Rs.27.93 per litre, and for cooking gas (domestic LPG) to Rs.378.38 per cylinder, the statement said.

The daily under-recovery of state oil marketing companies - Indian Oil, Bharat Petroleum and Hindustan Petroleum - effective May 1 on the sale of diesel, PDS kerosene and domestic LPG also is pegged to decline to Rs.256 crore from Rs.348 crore per day for the previous fortnight effective April 16.

Indian Oil announced a steep cut in petrol rates of Rs.3 per litre effective Wednesday on account of lower international petrol prices and a slight appreciation of the rupee against the US dollar.