Fuel prices stay put, Indian Oil suffers

MUMBAI, INDIA: Indian Oil Corporation is likely to take a hit of Rs 2,224 crore this month, as retail prices of various petroleum products, including liquefied petroleum gas (LPG), kerosene, motor spirits (MS) and high speed diesel (HSD), have not been revised.

Last fiscal, IOC and its subsidiary, IBP, had reported a combined shortfall of Rs 7,996 crore.

With crude oil remaining firm and the government not raising the prices of petroleum products, IOC is suffering a loss of Rs 14.17 per litre in kerosene and Rs 199.63 per LPG cylinder.

Though LPG prices have softened and the loss has come down from Rs 247 per cylinder last year, IOC fears that if the current trend in under recovery and under realisation continues, it will have to take a hit of Rs 24,000 crore this year.

The Telegraph (Calcutta, India)