The price of aviation turbine fuel is expected to increase by two per cent from next month.
Industry officials said petrol was expected to have an under-recovery of 50 paise per litre that would wipe off the current margins of 40 paise.
"Petrol will have a marginal loss of 10 paise from next month in tune with the international trend," said an industry executive. Petrol, a decontrolled product, will slip into negative territory after a month.
On diesel, a product still regulated by the government, the oil marketers -- Indian Oil, Bharat Petroleum and Hindustan Petroleum -- could see their under-recovery swell to about Rs 6 a litre from Rs 5 now.
These companies, who purchase crude oil at market rate, are required to sell diesel, kerosene and liquefied petroleum gas at government-subsidised prices, resulting in losses.
Price of the Indian basket of crude oil, that averaged $111.26 per barrel in the first fortnight of the month, has averaged $113.81
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