OMCs Incurring Daily Under-Recoveries of Rs 420 Crore

The Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas has reviewed international prices of crude oil and petroleum products during the 2nd Fortnight of November 2012. Accordingly, the under-recovery on High Speed Diesel (HSD) applicable for Ist fortnight of December effective 01.12.2012 has increased to Rs 10.03/Litre. This was Rs 9.06 per litre effective 16.11.2012 for 2nd fortnight of November 2012. In case of Domestic LPG the under-recovery for December 2012 has risen sharply to Rs 520.50/cylinder against Rs 478.50/ Cylinder for November 2012. The Under-recovery on PDS Kerosene too has remained at high level of Rs 30.93 per litre for December 2012, though slightly lower than Rs 31.30 per litre for November 2012             Product-wise Under-recoveries of Public Sector Oil Marketing Companies (OMCs); Product Unit Under-recoveries effective December 01,  2012 (Effective 16.11.2012 to 30.11.2012) Diesel Rs/Litre                10.03      (9.06)              PDS Kerosene* Rs/Litre                 30.93     (31.30)    Domestic LPG* Rs/Cylinder             520.50  (478.50) *Additionally, a subsidy of Rs 0.82/Litre on PDS Kerosene and Rs 22.58/Cylinder on Domestic LPG is provided by the Government. The under-recoveries on these products are computed on monthly basis.  OMCs are currently (effective 01 December 2012) incurring daily under-recovery of about Rs 420 crore on the sale of Diesel, PDS Kerosene and Domestic LPG. This was Rs 412 crore per day for the previous fortnight effective 16.11.2012. Further, the OMC’s have reported the following under-recoveries during April-September 2012:  Product Under Recovery (Rs/Crore) 2012-13 (April-September  2012) 2011-12 2010-11 Diesel 52,711 81,192 34,706 PDS Kerosene 14,331 27,352 19,484 Domestic LPG 18,544 29,997 21,772 Petrol -- -- 2,227 Total 85,586 138,541 78,190  3. Details of average International FOB price and Exchange rates are: Particulars Unit Price on last trading day i.e., 30 November, 2012 (Previous trading day of 29.11.2012) Fortnight November)16-30, 2012 (previous fortnight 1 - 15/11/ 2012) Crude Oil (Indian Basket) ($/bbl)               109.51        ( 108.24)                   108.94  (106.69)         (Rs /bbl)             5971.58      ( 5974.85)                 6010.22(5797.53)       Exchange Rate (Rs/$)                54.53          ( 55.20)                                      55.17    (54.34)