Diesel under-recovery falls sharply to Rs.1.33/litre

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SME Times News Bureau | 02 Aug, 2014
The under-recovery, or revenue loss, applicable on diesel for the first fortnight effective Aug 1 has been pegged sharply downwards at Rs.1.33 per litre, the petroleum ministry said Friday, even as the fuel was hiked by 50 paise a litre in line with the government policy of allowing small monthly hikes to reduce under-recoveries.

This compares to the under-recovery of Rs.2.49 per litre during the second fortnight of July.

"In the case of PDS kerosene and domestic LPG, the under-recoveries for the 1st fortnight of August 2014 will be Rs.32.98 per litre (Rs 33.07 per litre in last fortnight) and Rs.447.87 per cylinder (Rs.449.17 per cylinder in last fortnight) respectively," the ministry said.

The lowering of under recoveries has been made possible by the softening international oil rates and the monthly price increases.

Rates have cumulatively risen by Rs 11.24 per litre in 18 instalments since January 2013.

"Oil marketing companies, effective Aug 1, 2014, are now incurring combined daily under-recovery of about Rs.226 crore on the sale of diesel, PDS kerosene and domestic LPG. This is lower than Rs.261 crore daily under-recoveries during previous fortnight," the statement said.

"The under-recoveries for the financial year 2014-15 are projected to be Rs.91,665 crore while the figure was Rs.1,39,869 crore in the 2013-14," it added.