"(The) government has not allowed us to revise petrol, diesel, domestic LPG and kerosene prices in line with the changes in international market, resulting in Rs 90 crore (Rs 900 million) per day loss on fuel sales," a company official said.
IOC and sister PSUs - Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL) - currently lose Rs 4.69 per litre on petrol and Rs 3.09 a litre on diesel. They sell domestic LPG at a loss of Rs 158.55 per 14.2-kg cylinder and kerosene at Rs 17.15 per litre loss.
"If prices are not revised, the three companies together stand to lose Rs 44,274 crore (Rs 442.74 billion) in revenues. IOC's loss would be Rs 25,031 crore (Rs 250.31 billion)," he said.
The three state-run firms, which calculate desired retail selling price on 1st and 16th of every month based on the average international price in the previous fortnight, were till Monday losing Rs 4.60 per litre on petrol and Rs 2.33 a litre on diesel. Losses on LPG were Rs 158.78 per cylinder and that on kerosene Rs 15.46 a litre.
"Crude and product prices internationally have firmed up marginally during the last fortnight which are reflected in the marginal increase in the under-recovery (or revenue loss on fuel sales)," the official said.