Under-recoveries by state-owned oil marketing companies are set to hit a new record in June with the under-realisation on the sale of diesel, the largest selling fuel and also the most politically sensitive, almost matching the subsidised selling price.
At Rs 31.58 per litre, the under-realisation on diesel is a few paise short of the actual subsidised selling price of diesel in Delhi - Rs 31.76 a litre - thanks to an over 14 per cent jump in oil prices in the last month.
RISING SHORTFALLS | |||
Revenue losses of the oil companies (Rs/litre) | |||
May 16-31 | Jun 1-15 | % change | |
Petrol | 16.34 | 21.43 | 31.15 |
Diesel | 23.49 | 31.58 | 34.44 |
Kerosene | 28.72 | 35.98 | 25.28 |
LPG* | 305.9 | 353 | 15.4 |
*Per 14.2 kg cylinder | |||
Under-recovery on diesel almost equal to retail price in Delhi Under-recovery on petrol crosses Rs 20 per litre for the first time |
The new under-realisation estimates are for the fortnight beginning June 1 and are based on prices in the last fortnight of May. Diesel accounts for nearly 40 per cent of sales.The under-realisation on petrol also went up, crossing Rs 20 a litre for the first time.The under-realisation on kerosene rose to Rs 35.98 per litre and that on domestic cooking gas rose to Rs 353 per 14.2-kg cylinder from Rs 305.90 last month.
The total subsidy bill for the oil marketing companies, as a result, ballooned to over Rs 650 crore per day from Rs 580 crore a day last month.
FUEL | ||||
Petrol |
Diesel | |||
Current |
Desired |
Current |
Desired | |
Delhi | 45.52 | 66.95 | 31.76 | 63.34 |
Kolkata | 48.95 | 70.38 | 33.92 | 65.5 |
Mumbai | 50.51 | 71.94 | 36.08 | 67.66 |
Chennai | 49.61 | 71.04 | 34.4 | 65.98 |
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