State-run oil marketing companies Indian Oil, Hindustan Petroleum and Bharat Petroleum are likely to lose Rs 45,478 crore (Rs 454.78 billion) this fiscal on selling fuel below cost, Petroleum Minister Murli Deora said.
Addressing the Parliamentary Consultative Committee, Deora said such a huge subsidy support was unsustainable in long run.
"Today, the public sector oil marketing companies incurs an under-recovery (revenue loss) of Rs 3.10 per litre on petrol, Rs 2.55 a litre on diesel, Rs 17.30 per litre on PDS kerosene and Rs 241.00 on each 14.2 kg cylinder of domestic LPG," he said. Deora said his ministry has sought oil bonds of Rs 20,871 crore (Rs 208.71 billion) from the finance ministry to compensate the three firms for loss on PDS kerosene and domestic LPG but bonds are yet to be issued.
"The delay in oil bonds is reflecting on their financial performance," he said. In the second quarter ended September 30, IOC reported a meager profit of Rs 284 crore (Rs 2.84 billion) while BPCL and HPCL reported losses of Rs 159 crore (Rs 1.59 billion) and Rs 137 crore (Rs 1.37 billion) respectively.
"The OMCs are the backbone of the country's energy security and, hence, their financial health is a cause of concern for us," he said, adding the report of the expert group under Kirit Parikh on sustainable fuel pricing policy was expected in January.
