Reeling under pressure because of widening gap between the domestic and global prices of petroleum products, Indian Oil Corporation says its time Government took a decision.
A disgruntled Indian Oil Corporation Chairman, R S Butola said that his company is making a strong case for bringing petrol under regulated regime, if a price hike is not possible.
The company suffers loss for selling petroleum products at a controlled price. During the first fortnight of August, IOC suffered a loss of Rs 1.37 a litre on petrol, Rs 12.13 a litre on diesel, kerosene PDS Rs 28 a litre and LPG domestic Rs 231 a cylinder.
“In the absence of sanction of any budgetary support from the Government in the current quarter, no amount has been accounted towards under recovery on sale of diesel, kerosene PDS and domestic LPG in statement of profit and loss as revenue grants,” Butola said.
Consequent to the non-revision in retail selling prices in line with the international prices, the company has suffered net under-realisation of Rs 17,484.92 crore (April-June 2011, Rs 7,672.59 crore) on sale of these products – diesel, kerosene PDS, and domestic LPG.
Though petrol is a deregulated product an artificial Government control continues.