Under-recovery on diesel at Rs 10.27/litre

Under-recovery on diesel at Rs 10.27/litre

Under-recovery on diesel has now increased to Rs 10.27 per litre from earlier Rs 9.22 per litre despite a price increase last week, the ministry of petroleum and natural gas said on Monday.

 According to the Petroleum Planning and Analysis Cell (PPAC), under the petroleum ministry, the under-recovery on diesel applicable for the second fortnight effective on February 16 has increased to Rs 10.27, compared to Rs 9.22 per litre for the first fortnight of the month, as on February 11, 2013.

 In case of domestic LPG and kerosene, under-recoveries remain unchanged at Rs 481 per cylinder and Rs 31.60 per litre respectively, for February 2013, as under-recoveries on these products are computed on monthly basis.

Oil companies are incurring a daily under-recovery of about Rs 454  crore on the sale of diesel, kerosene and domestic LPG.

 “This was Rs 400 crore per day for the previous fortnight effective,” a ministry statement said. 

Even after decontrol in June 2010, companies are still facing minor under-recovery on petrol. According to IOC Chairman R S Butola, the company’s under-recovery from petrol is at Rs 675 crore.

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