The Hindu Business Line : Indian crude basket touches new high of $106.39

New Delhi, April 16 The Indian crude basket jumped by $1.76 a barrel from Monday and touched a fresh high of $106.39 a barrel on Tuesday. The crude basket has averaged at $101.69 a barrel so far this month up (April 15) from the previous full month (March) average of $99.76 a barrel.

The volatility in crude prices has led to the increase in under-recoveries suffered by the public sector oil marketing companies (OMCs) – Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation. The OMCs together are losing over Rs 400 crore a day on fuel sale, as the retail selling prices of four petroleum products – petrol, diesel, kerosene sold under public distribution system, and cooking gas – have not been increased in tandem with the international oil prices.

As on April 1 the revenue loss suffered on sale of petrol stood at Rs 10.80 a litre and that of diesel at Rs 17 a litre. The revenue loss on sale of kerosene stood at Rs 25 a litre and that on cooking gas was at Rs 316 a cylinder. Indian Oil Corporation was losing Rs 230 crore a day on selling the products below the cost price.

To deal with the steep escalation in international oil prices, the Government has adopted the principle of ‘equitable burned sharing’ between the Government, public sector oil companies and consumers. The Government had with effect from February 15 this year marginal increased petrol and diesel prices by Rs 2 a litre and Re 1 a litre respectively. It had left the prices of kerosene and cooking gas untouched. Even after this marginal increase the OMCs suffered revenue loss of Rs 77,304.50 crore on the sale of these products during 2007-08.

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