Diesel under-recovery rises sharply to Rs.12.12/litre

The under-recovery, or revenue loss, applicable on diesel for the first fortnight effective Sep 1 has been pegged sharply upwards at Rs.12.12 per litre, the petroleum ministry said Monday.

This compares to the under-recovery of Rs.10.22 per litre during the second fortnight of August 2013.

"In the case of PDS kerosene and domestic LPG, under-recoveries for the month of September 2013 increased further to Rs.36.83 per litre and Rs.470.38 per cylinder, respectively. The under-recoveries during August 2013 on PDS kerosene was Rs.33.54 per litre and Rs.412.00 per cylinder on domestic LPG," the ministry said in a statement here.

"OMCs (oil marketing companies), effective 1 Sept 2013, are incurring higher combined daily under-recovery of about Rs.470.38 crore on the sale of diesel, PDS kerosene and domestic LPG. This was Rs.389.00 crore for the previous fortnight effective 16.8.2013," the statement added.

The Indian basket crude oil price per barrel as on the last trading day of Aug 30 stood at $112.68, or Rs.7501.11, at the exchange rate of Rs.66.57 to a US dollar per barrel.

State-run Indian Oil has hiked prices of petrol and diesel per litre by Rs.3.05 and Re.1, respectively, the increases being administered in two instalments during August.

OMCs have been authorised by the government to increase the retail selling price of diesel within a small range every month.