State-owned fuel retailers -- Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) -- are likely to end the fiscal with a loss of Rs 47,960 crore on selling petrol, diesel, domestic LPG and kerosene below cost.
"The three firms lose Rs 250 crore every day on selling the four products below imported cost," an official said.
Losses on fuel sales have widened as global oil rates have firmed up in March. IOC, BPCL and HPCL currently sell petrol at a loss of Rs 6 per litre, Rs 4.06 a litre on diesel, Rs 16.91 per litre on PDS kerosene and Rs 267.39 per 14.2-kg LPG cylinder.
The revenue loss for the 2009-10 has widened to Rs 47,960 crore against earlier projection of Rs 45,000 crore.
While the losses on petrol and diesel are met by upstream firms like ONGC, the government has not kept its promise to make up all of the revenues lost on selling LPG and kerosene, he said.
Of the Rs 29,353 crore loss in April-December period, the upstream firms contributed Rs 8,364 crore to cover for entire shortfall on petrol and diesel. But of the Rs 20,989 crore loss on LPG and kerosene in the first nine months, the Finance Ministry has provided only Rs 12,000 crore.
Besides the Rs 8,989 crore uncovered amount of April-December, about Rs 12,000 crore of revenue loss on LPG and kerosene in January-March quarter also remains uncovered.
The official said IOC, BPCL and HPCL will get only Rs 12,000 crore to make up for part of the losses on LPG and kerosene.
IOC would get Rs 7,100.18 crore, BPCL Rs 2,370.77 crore and HPCL Rs 2,529.05 crore.
The compensation is, however, less than Rs 20,989 crore sought by the retailers to make up for the losses they incurred on selling domestic LPG and kerosene below cost during April-December period.
IOC had sought Rs 12,419 crore, BPCL Rs 4,147 crore and HPCL Rs 4,423 crore, he said.
The official said till last month the retailers were selling petrol at a loss of Rs 4.97 a litre and diesel at Rs 3.27 per litre.
