Financial Daily from THE HINDU group of publications
Wednesday, Apr 20, 2005

News
Features
Stocks
Port Info
Archives
Google

Group Sites

Industry & Economy - 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.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page


Stories in this Section
ECB access for qualified NGOs


`Energy efficiency must get due attention'
Paper makers want dumping duty on caustic soda to go
Call to put legal system on the fast track
New CESTAT President
CII lists anomalies in Customs duty structure
Indo-Pak amity heralds hope on prospects for mutual trade benefits
Assocham spots 9 areas to drive Indo-Pak trade
`Better infrastructure needed to boost Indo-Pak trade'
Oil marketing PSUs lose Rs 1,300 cr in two weeks
M.P. seeks more kerosene
Global consumption of finished steel products to cross 1 b tonnes
Steel cos urged to focus on R&D to cut down costs
SAIL to finalise IISCO corporate plan by May
VAT panel not to introduce new rate for 3 months
Norms laid out for tax rebates on services exports
Ordinance on VAT likely for Kerala SSI units
Union Bank advances to SSIs up 20 pc
FMCG meet to discuss faster movement of goods in Mumbai
Rajdeep Sardesai forms venture with TV18
SS Music to waft into US on direct-to-home
Cartoon Network, POGO to launch new summer shows
Dish TV offers new DTH package
Lankan team visits Vizag apparel park site
UK to put up strong show at biotech meet in Bangalore
Keltec develops GSLV components
ESIC defers decision on higher allocation
ONGC mite for AP rural growth
Safety of baby products — Health Ministry under pressure to deliver verdict


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line