State oil firms' revenue losses on diesel reduced by Ts 2.62 per litre


Indian Oil BSE 0.55% , Bharat Petroleum BSE 1.01%and Hindustran Petroleum have reported that their revenue loss on diesel sale has dramatically dropped by Rs 2.62 per litre because of a decline in international oil prices. Revenue loss on diesel has dropped to Rs 8.64 per The litre on Mar 16 compared to Rs 11.26 per litre in the previous fortnight, the oil ministry said in a statement quoting its data-keeper Petroleum Planning and Analysis Cell (PPAC). "We have deferred our decision to raise diesel rates from Mar 16 for two reasons. One, the parliament was in the session and even a small hike in diesel rates would have disrupted proceedings of the Parliament. Secondly, we had some breathing space as our revenue losses on the fuel dropped significantly, "chairman of one oil firm said requesting anonymityLast week, state oil firms sharply cut petrol rates by deferred a hike in diesel prices as the government was concerned about protests in the crucial budget session of Parliament. The Cabinet has empowered oil companies to raise diesel rates in small dozes every month till all revenue losses are eliminated, but state oil firms take tacit permission of the oil ministry before taking fuel-pricing decisions. "Diesel price is expected to be raised by about 50 paise per liter after the Budget session, "a senior executive of an oil firm said. There is no change in the revenue losses of other controlled products. Companies are losing Rs 33.43 a litre on kerosene and Rs 439 on every 14.5 kg cooking gas cylinder.