Public sector oil marketing companies have been making a profit of ₹3.56 a litre (over-recovery) on diesel between October 2 and October 16, according to the Petroleum Planning and Analysis Cell.
During the fortnight ending October 1, the over-recovery or profit on retail diesel sales was ₹1.90 a litre. This is due to the falling price of crude oil internationally, which has brought down the Indian basket to $83.85 a barrel as on October 15.
However, the oil marketing companies have not been able to pass on the benefits of falling crude oil prices to consumers as the fuel price is still regulated by the Government. Due to elections in Maharashtra and Haryana, the Government also has not been able to cut diesel prices.
However, the Government is expected to announce a price cut in diesel before Diwali as the election process is now over. The price cut could be done in two instalments.
Meanwhile, the under-recovery or loss made on sale of kerosene and domestic LPG remained at ₹31.22 a litre and ₹404.64 a cylinder, respectively, during the fortnight ended October 16.
The oil marketing companies – Indian Oil, HPCL and BPCL – are incurring a combined daily loss (under-recovery) of around ₹139 crore on the sale of PDS kerosene, domestic LPG and diesel during the fortnight ended October 16. This is lower than ₹156 crore daily under-recovery incurred during the previous fortnight.