Diesel under-recovery rises sharply

New Delhi, June 3 (IANS) The under-recovery, or revenue loss, applicable on diesel for the second fortnight effective June 1 has been pegged sharply upwards at Rs.4.87 per litre, the petroleum ministry said Monday.

This compares to the under-recovery of Rs.3.73 per litre during the second fortnight of May 2013, effective May 16.

“In the case of PDS kerosene and domestic LPG, under-recoveries for the month of June 2013 fell to Rs.27.75 per litre (from Rs.27.93 per litre) and Rs.335.14 per cylinder (from Rs.378.38 per cylinder), respectively,” the ministry said in a statement.

State oil marketer Indian Oil (IOC) hiked diesel rates Friday by 50 paise per litre, and of petrol by 75 paise, mainly due to depreciation of the rupee against the US dollar.

Oil marketing companies (OMCs) have been authorised to increase the retail selling price of diesel within a small range every month.

“OMCs, effective 1st June 2013, are incurring daily under-recovery of about Rs.276 crore on the sale of diesel, PDS kerosene and domestic LPG. This is higher than daily under-recoveries of Rs.252 crore for the previous fortnight effective 16.5.2013,” the statement added.

The Indian basket crude oil price per barrel as on the last trading day – May 31 – stood at $99.34, or Rs.5,612.71 (exchange rate of Rs.56.50 to a dollar).

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