IOC, HPCL, BPCL and IBP will together lose Rs 8,300 crore (Rs 83 billion) this year for not hiking LPG and kerosene prices despite rise in costs, petroleum minister Ram Naik said on Wednesday.
"The government has taken a decision not to increase the prices of LPG and kerosene for a year. The prices of these commodities would have to be increased by Rs 105 per cylinder and Rs 3 per litre, respectively, if customers are to be charged at the international price parity of these products," he said.
"The public sector undertakings will absorb the burden of Rs 8,300 crore by not passing on the increase to customers," he added.
After providing for government subsidy of Rs 45.17 per cylinder and Rs 1.64 per litre for kerosene (amounting to Rs 4,700 crore -- Rs 47 billion -- annually), oil companies are selling LPG at Rs 105 per cylinder below the cost and kerosene at a discount of about Rs 3 per litre, Naik said.