The government is not considering a cut in fuel prices as PSU companies continue to make losses on sale of LPG and kerosene.
"At the moment there is no proposal before us for reducing prices," petroleum secretary R S Pandey told reporters in New Delhi.
State-run oil retailers have started making profits on sale of petrol and diesel, but continue to incur hefty losses on domestic LPG and kerosene.
With international crude oil prices sliding further on falling demand as major economies slow down, the three firms are making a net 70 paise per litre profit on sales of diesel while they earn Rs 9.86 per litre extra on selling petrol above the imported cost.
Based on the average international oil prices in the first fortnight of November, the state-run firms are earning a margin of Rs 16 crore per day on petrol and Rs 5 crore (Rs 50 million) a day on diesel.
However, they continue to lose on kerosene sold through ration shops and domestic LPG. Kerosene is being sold at a loss of Rs 22.40 a litre and LPG at Rs 343.49 per cylinder.
The fall in international oil prices will result in lower revenue loss on fuel sales this fiscal. IOC, BPCL and HPCL will end the 2008-09 fiscal with Rs 122,710 crore (Rs 1227.1 billion) revenue loss, Rs 92,853 crore (Rs 928.53 billion) of which has already been accounted for in