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PSU oil cos seek Rs 300 bn for losses

PSU oil cos seek Rs 300 bn for losses
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Public sector oil marketing companies have sought Rs 30,000 crore from the government as compensation to level up the revenue loss they suffered last fiscal by selling fuel at government-fixed cheaper rates.

IOC, HPCL and BPCL together lost Rs 78,000 crore (industry estimates) in 2010-11 by selling at subsidised rates. The government has so far given these firms only Rs 20,000 crore in compensation, while upstr­eam oil companies have paid Rs 25,000 crore.

The loss will be even more in the current fiscal since crude prices have jum­ped to over $120 a barrel in the international market from abo­ut $75 a year ago. The oil marketing companies are currently losing Rs 18.19 a litre on diesel, Rs 29.69 a litre on kerosene and Rs 329.73 on every cylinder of liquefied petroleum gas (LPG). The industry has projected over Rs 180,000 crore of revenue loss in 2011-12.

The companies are also losing Rs 7-8.50 a litre on petrol. Though it is decontrolled, he government has not allowed them to raise the price.

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