Diesel under-recovery falls, sharper fall for kerosene, LPG

After giving a miss the previous day to hiking diesel rates as part of monthly fuel price revision, the oil ministry Tuesday cited statistics to claim that the under-recovery, or revenue loss, on diesel for the fortnight effective April 1 has come down to Rs.5.93 per litre from Rs.7.16 in the second fortnight of March.

Moreover, the under-recoveries for the period on kerosene for public distribution and domestic cooking gas, too, have been pegged sharply downwards, the ministry said.

"In the case of PDS Kerosene and Domestic LPG also, the under-recoveries for the month of April 2014 fall sharply to Rs.34.43 per litre (Rs.36.34 per litre in March 2014) and Rs.506.06 per cylinder (Rs.605.80 per cylinder for March 2014), respectively," the petroleum ministry said in a statement.

Indian Oil Corp Monday announced a 75 paise per litre cut in petrol prices.

"Oil Marketing Companies (OMCs), effective April 1, 2014, are now incurring combined daily under-recovery of about Rs.342 crore on the sale of diesel, PDS Kerosene and domestic LPG. This is lower than Rs.399 crore daily under-recoveries during previous fortnight effective 16.03.2014," the ministry said.

The state-run OMCs had together lost Rs.1,00,632 crore on the sale of the three products during April-December. This compares with an under-recovery of Rs.1,61,029 crore in 2012-13 and Rs.1,38,541 crore in the previous fiscal.

The Indian basket crude oil price per barrel (159 litres to a barrel) on the last trading day Monday was $105.14 -- or Rs.6,318.91, at the exchange rate of Rs.60.10 per barrel.

Since January 2013, diesel rates have risen by a cumulative Rs.8.33 per litre.