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OMCs’ under-recovery for diesel rises

OMCs’ under-recovery for diesel rises

Data released by the union petroleum ministry shows that the under-recovery of state-run oil marketing companies (OMCs) on sale of diesel has risen to 10.27 per litre for the second fortnight beginning February 16 from Rs 9.22 in the first fortnight of the month.

This is despite the 45 paise per litre hike in diesel prices effected by these firms recently in the second dose of a similar increase after the government partially deregulated the fuel last year.

But the under-recovery for domestic LPG and kerosene remains the same at Rs 481 per cylinder and Rs 31.60 per litre respectively for February 2013, as under-recoveries on these are calculated on a monthly basis.

As on February 16, 2013, the three OMCs incur daily under-recovery of about Rs 454 crore on the sale of diesel, PDS kerosene and domestic LPG. This was Rs 400 crore per day for the previous fortnight, a statement from the oil ministry said.

The Indian basket crude oil price as on the last trading day stood at $114.49 (Rs 6,181.32) per barrel.The under-recovery, or losses, on diesel for the second fortnight effective on February 16 has increased to Rs 10.27 per litre, the oil ministry said.

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