PSU OMCs are losing Rs 275 cr every day on diesel sale

The state-run oil marketing companies IOC, HPCL and BPCL are losing Rs 275 crore per day because of selling diesel at much lower price compared to global crude oil prices. The loss has climbed to around Rs 7 per litre for diesel because of steep increase in the global crude oil prices during recent times. Except Diesel they are losing Rs 19.60 per litre on Kerosene and Rs 366.28 per 14.2 kg LPG gas cylinder. The projected total loss will be around Rs 73,000 crore for the current fiscal year 2010-11.

The global crude oil price has been above USD 90 per barrel since last 1 month and expected to rise to USD 100 per barrel level amid Middle East crisis in near future. The Government is also not willing to increase the diesel and gas prices because of high inflation and coming assembly elections in 5 states during April. The food inflation is at very high level (nearly 14%) and increasing diesel price will have very significant impact on the inflation.