State-owned oil firms Indian Oil, Bharat Petroleum and Hindustan Petroleum will lose a whopping Rs 177,562 crore on selling fuel at government-controlled rates this fiscal, 68 per cent more than what they lost in high-cost 2008-09. Revenues on diesel, domestic LPG and kerosene were below their imported cost in 2011-12 fiscal.
The revenue loss, termed as under-recovery by oil firms, will be the highest-ever, even more than in the troubled 2008-09. The three oil firms currently lose a record Rs 18.11 per litre on diesel, Rs 28.33 a litre on kerosene and Rs 315.86 per 14.2-kg domestic LPG cylinder, and about Rs 4.50 per litre on petrol.
Finance Minister Pranab Mukherjee has refused to cut customs and excise duty on crude and product this time. The situation in the current 2011-12 fiscal will be worse, as the PSU oil companies lose Rs 540 crore per day.