Press Information Bureau

Government of India

Ministry of Petroleum & Natural Gas

19-December, 2012 12:12 IST

 

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 Ist Fortnight of December 2012. Accordingly, the under-recovery (UR) on High Speed Diesel (HSD) applicable for 2nd fortnight of December effective 16.12.2012 declined to Rs 9.28 /Litre which is still a high level. This was Rs 10.03 per litre effective 01.12.2012 for Ist fortnight of December. In case of Domestic LPG and PDS Kerosene the under-recoveries for December 2012 remain unchanged i.e. to Rs 520.50/cylinder and Rs 30.93 per litre respectively as the under-recoveries on these products are computed on monthly basis.

Product-wise Under-recoveries of Public Sector Oil Marketing Companies (OMCs);

Product	Unit	Under-recoveries effective December 16,  2012 (Effective 01.12.2012 to 15.12.2012)
sel	Rs/Litre	9.28    (10.03)
PDS Kerosene*	Rs/Litre	30.93     (30.93)
Domestic LPG*	Rs/Cylinder	520.50  (520.50)

Additionally, a subsidy of Rs 0.82/Litre on PDS Kerosene and Rs 22.58/Cylinder on Domestic LPG is provided by the Government.

OMCs are currently (effective 16 December 2012) incurring daily under-recovery of about Rs 411 crore on the sale of Diesel, PDS Kerosene and Domestic LPG.

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., 14 December, 2012 (Previous trading day of 13.12.2012)	Fortnight December)01-15, 2012 (previous fortnight 16 - 30/11/ 2012)
Crude Oil (Indian Basket)	($/bbl)	106.39              (106.90)	106.85  (108.94)
	(Rs /bbl)	5786.55            (5797.19)	5815.85(6010.22)
Exchange Rate	(Rs/$)	54.39                (54.23)	54.43   (55.17)

 

RCJ/RKS – Under-recovery 17-12-2012      

 

 

Under-recovery on diesel persists, maintaining high subsidy burden and daily losses for oil marketing companies. Under-recovery on High Speed Diesel declined to Rs 9.28 per litre effective 16 December 2012 while Domestic LPG and PDS Kerosene under-recoveries remained unchanged at Rs 520.50 per cylinder and Rs 30.93 per litre; an additional government subsidy is provided for PDS Kerosene and Domestic LPG. OMCs were incurring about Rs 411 crore daily under-recovery on Diesel, PDS Kerosene and Domestic LPG, and product-wise cumulative under-recoveries for April-September 2012 are tabulated to show fiscal exposure. The release also records fortnightly international crude prices and exchange rates as drivers of these under-recoveries.