Click to play videoNew Delhi Government reluctance to hike fuel prices is hitting the oil and marketing companies hard.
The losses incurred by the companies have widened to Rs 650 crore per day from Rs 580 crore a day till last week.
Government has been speculating for a couple of weeks on how to compensate Rs 2,25,000 crore revenue loss on fuel sales.
But with inflation inching to 45-month high of 8.1 per cent, the several round of discussions have yielded no decision.
Per litre loss on petrol has risen to Rs 21.43, while losses on diesel have widened to Rs 31.58 per litre and on kerosene they have jumped to Rs 35.98.
According to sources the three firms that were losing Rs 16.34 a litre on petrol until last week, are incurring a loss of Rs 21.43 on sale of every litre from June 1. Similarly, the losses on diesel have widened to Rs 31.58 per litre from Rs 23.49 while on kerosene they have jumped to Rs 35.98 from Rs 28.72 per litre.
Losses on LPG have swelled to Rs 353 per 14.2-kg cylinder from Rs 305.90.
IOC, BPCL and HPCL calculate import parity price of petrol and diesel on the first and the 16th of every month based on the average of the previous fortnight. LPG and kerosene prices are calculated once a month based on monthly average imported price.
However, with the surge in global oil prices leaving a Rs 225,040 crore revenue deficit with oil companies, Prime Minister Manmohan Singh has over the past one week held several rounds of consultations with senior ministers and UPA Chairperson Sonia Gandhi on raising fuel prices but a consensus has eluded the Government.
"We cannot allow the subsidy bill to rise any further. Nor do we have the margin to fully insulate the consumer from the impact of world commodity and oil price inflation," the Prime Minister said.
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