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Diesel under-recovery falls to INR 7.16 a litre

The under-recovery, or revenue loss, on diesel for the second fortnight effective March 16 has come down to INR 7.16 per litre from INR 8.37 during the first fortnight of the month, the petroleum ministry said on Tuesday. "In the case of PDS Kerosene and Domestic LPG the under-recoveries for the month of March 2014 remains unchanged at INR 36.34 per litre and INR  605.80 per cylinder respectively as their refinery gate prices are determined on monthly basis," the ministry added.

"Oil Marketing Companies (OMCs), effective 16.03.2014, are now incurring combined daily under-recovery of about INR 399 crore on the sale of diesel, PDS Kerosene and domestic LPG. This is lower than INR 411 crore daily under-recoveries during previous fortnight effective 01.03.2014," the ministry said.

The three firms had together lost INR 1,00,632 crore on the sale of the three products in April-December and may end the financial year with a total under-recovery of about INR 1,40,000 crore. This compares with an under-recovery of INR 1,61,029 crore in 2012-13 and INR 1,38,541 crore in the previous fiscal.

The Indian basket crude oil price per barrel (159 litres to a barrel) has dropped to $105.36 per barrel from $106.18. Since January 2013, diesel rates have risen by a cumulative INR 8.33 per litre.

Source-On Request