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Mr Behuria said that IOC was losing about Rs 80 crore per day on selling petrol, diesel, LPG and kerosene below the production cost.

New Delhi , April 19

With crude oil prices touching a record high, Indian Oil Corporation (IOC) is seeking a Rs 5-8 per litre hike in petrol and diesel prices to offset the Rs 80-crore revenue loss per day it was suffering as a result of selling fuel below production costs.

"If crude prices stay put at the current levels, our revenue loss for the 2006-07 fiscal would be around Rs 30,000 crore," Mr S. Behuria, Chairman, IOC, told reporters on Wednesday.

Heavy loss

Mr Behuria said that IOC was losing about Rs 80 crore per day on selling petrol, diesel, LPG and kerosene below the production cost. "Our revenue loss is estimated at Rs 2,500 crore in April alone,'' he said.

IOC and other state-run refining and marketing companies are under a Government directive to sell oil products - gasoline, diesel, liquefied petroleum gas and kerosene - below the market prices.

"We hope that the Government will announce some measures to help the oil companies because they are also incurring revenue losses," Mr Behuria added, without elaborating.

Last week, the Petroleum Minister, Mr Murli Deora, said he would meet the Finance Minister to discuss measures to help oil firms.

IOC, BPCL, HPCL and IBP together posted a net loss of Rs 9,700 crore in the first three quarters of the last fiscal year because the Government did not raise fuel prices in line with soaring crude prices.

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