Financial Daily from THE HINDU group of publications
Wednesday, Apr 20, 2005
Financial Daily from THE HINDU group of publications Wednesday, Apr 20, 2005 |
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Industry & Economy
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Petroleum Marketing - Trends Oil marketing PSUs lose Rs 1,300 cr in two weeks Pratim Ranjan Bose
Kolkata, April 19 UNDER-RECOVERY on account of subsidised LPG and kerosene and price under-realisation on account of petrol and diesel have taken an abnormal toll in 2005-06. During the first fortnight of April, the oil marketing PSUs have lost a total of Rs 1,300 crore on both counts. Of the total, IOC took a hit of close to Rs 650 crore. HPCL and BPCL each lost in the range of 300 crore. While non-revision of prices of petrol and diesel even in the face of unprecedented crude price rise was a major reason for under-realisation, the loss was further inflated due to the additional excise burden and the 50 paise cess. It may be mentioned that Indian crude import prices crossed $50 a barrel during the first week of April compared to $30 during the same period in the previous year. IOC, the largest oil marketing company, had suffered a total loss of Rs 8,418 crore in 2004-05, of which Rs 7,332 crore was due to under-recovery and Rs 1,086 crore due to under-realisation. "While we had accepted under-recovery on LPG and kerosene as a fait accompli, under-realisations are much higher so far," said an IOC official. The company has lost close to Rs 300 crore due to under-realisation in the first fortnight. Sources in HPCL and BPCL confirmed under-realisation to the tune of Rs 140-150 crore each. According to Mr Sarthak Behuria, Chairman of IOC, non-revision of production prices after November last year and the excise and cess all put together has led to under-realisation of close to Rs 5.50 paise per litre in HSD and a little below Rs 5 in petrol.
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