Loss in 6 weeks? Rs 5,800 cr

Public sector oil retailing firms have lost over Rs 5,800 crore in the first six weeks of current fiscal due to non-revision of petrol, diesel, LPG and kerosene prices in line with the spurt in international oil prices and increase in duties, IOC Chairman Sarthak Behuria said on Tuesday.

State-run Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp together lost Rs 2,560 crore (Rs 25.60 billion) on diesel and Rs 569 crore (Rs 5.69 billion) on petrol.

Price of petrol needs to be raised by Rs 4.59 a litre, half of it (Rs 2.52) on account of increase in excise duty.

Similarly, diesel prices need to be raised by Rs 4.97 per litre, including Rs 1.53 due to excise effect.

"The oil marketing companies are unable to recover even the purchase price of products, thus losing on sales. The gross under-recovery on petrol, diesel, LPG and kerosene for 2004-05 and April 1 to May 15 is Rs 20,310 crore (Rs 203.10 billion) and Rs 5,860 crore (Rs 58.60 billion), respectively," he said at a Petrofed seminar in New Delhi.

The increase in petrol and diesel prices sought also includes Rs 0.61 per litre due to increase in road cess to Rs 2 per litre.

Behuria said IOC's outstanding has jumped 75 per cent to about Rs 18,000 crore (Rs 180 billion) over the past one year as the company borrowed money to meet its working capital requirement.

Reliance Industries president P Raghavendran said the current international oil price rise was long term fundamental increase due to structural changes and 'the only viable option for India is to pass this price increase to the final consumer.'