The loss on the sales of diesel at government notified rates dropped below Rs 3 per lire in May after monthly hike of upto 50 paise per litre. However, with the value of rupee taking a dive against dollar, the losses have been learnt to have expanded to Rs 10.22 per litre.

“We had requested the government for price hike on ad-hoc basis. The decision on the increase in diesel prices rests with the government which has to take a decision on it. I have no comments on it,” Indian Oil Corporation director (finance) PK Goyal said.

Besides, losses on sales of diesel have also increased from Rs 9.29 to Rs 10.22 in the beginning of the month. Apart from diesel, the oil companies are also facing losses on kerosene and LPG at Rs 33.54 per litre and Rs 14.2 per kg respectively.

PK Goyal further said that the total loss of revenue or under-recoveries on diesel and cooking fuel has been estimated at Rs 80,000 crore during the initial part of the fiscal and it has now increased to Rs 1,40,000 crore.

“The rupee has depreciated 12 percent since April. It was Rs 59.39 per dollar and on Monday it increased to Rs 64.10. The rupee depreciating by one against the US dollar adds Rs 8,000 crore to our under-recoveries,” PK Goyal said.

It must be mentioned here that the government allowed the oil companies to raise the rates of diesel by upto 50 paise per month till the losses are not adjusted. And with prices being increased at regular intervals, the losses on diesel had come down to Rs 3 per litre in May.

However, the slide in rupee since April has led to the difference shooting to Rs 10.22 per litre.


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