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 upstrÂeam oil companies have paid Rs 25,000 crore.
The loss will be even more in the current fiscal since crude prices have jumÂped to over $120 a barrel in the international market from aboÂut $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.