Rise As Fuel Price Cut Is Not On Cards Controlled Price - Nov 21, 2008

Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL), and Indian Oil Corporation (IOC) were up by 2.33% 4.39%.As per reports, the government is not considering a cut in fuel prices as state-run companies continue to make losses on sale of LPG and kerosene.State-run oil marketing firms for the first-time in three years started making profits on sale of petrol and diesel this month but they continue to lose Rs 82 crore per day on kerosene and LPG.

The three firms, who started making profit on the sales of petrol from November 1, this week broke-even on diesel sales.

Based on the average international oil prices in the first fortnight of November, the state-run firms are earning a margin of Rs 16 crore per day on petrol and Rs 5 crore a day on diesel.

However, they continue to lose on kerosene sold through ration shops and domestic LPG. Kerosene is being sold at a loss of Rs 22.40 a litre and LPG at Rs 343.49 per cylinder.

Reports sugested the fall in international oil prices will result in lower revenue loss on fuel sales this fiscal. IOC, BPCL and HPCL will end the 2008-09 fiscal with Rs 1,22,710 crore revenue loss, Rs 92,853 crore of which has already been accounted for in the first half of the fiscal.

Oil prices fell to 3-1/2-year low, trading below $50 a barrel, as commodity prices slumped on expectations of reduced demand as a result of a global recession. However, the price recovered back to $50 today. State-run oil marketing firms suffer revenue loss on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.