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Pratim Ranjan Bose

Under-realisations go up substantially in LPG

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Kolkata Feb. 2 The public sector oil marketing companies have started registering positive margin on sale of both petrol and diesel beginning February 1.

This is the first time the companies are making money on sale of both the auto-fuels since the retail price revision on November 30.

Under-realisations, however, have increased substantially in LPG.

According to Mr S.V. Narasimhan, Director (Finance), IndianOil, the company posted a gross margin of 25 paise per litre on petrol and Rs 3.40 in diesel beginning this month.

This is against an under-recovery of 25 paise on diesel and a positive margin of Rs 1.90 on petrol posted in the second fortnight of January.

Mr S.K. Joshi, Director (Finance), BPCL, also confirmed positive margin on sale of petrol and diesel.

The Union Minister for Petroleum and Natural Gas, Mr Murli Deora, has already indicated that the Centre would consider fresh revision in retail prices only if the international crude prices remain stable for a considerable period.

It may be mentioned that the marketing companies (IOC, BPCL, HPCL and IBP) use the previous fortnight's average price (for both crude oil and products) as benchmark for the current fortnight in petrol and diesel.

Accordingly, though the international crude prices started softening almost a month ago, there was a time lag before the positive margins were reflected in the books of accounts.

According to sources in IOC, under-realisations in LPG have increased by approximately Rs 50 a cylinder during the last two months.

This is due to firming up of international prices of LPG.

The company is currently losing Rs 178 a cylinder on sales of LPG. Oil companies follow monthly pricing cycle in the case of LPG.

In a reverse movement, under-realisation in kerosene has come down marginally from over Rs 14 per litre to Rs 12.80 a litre in February.

More Stories on : Petroleum | PSU | Hindustan Petroleum Corporation Ltd

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