Its double whammy for Oil Marketing Companies – on the one hand, crude oil price was falling and on the other rupee appreciated vis-à-vis dollar during the last fortnight. This has helped the OMCs to breath easy as under-recovery on diesel has come down substantially to Rs 10.51/litre from a whopping Rs 14.5/litre. The average price of the Indian crude oil basket for the fortnight went down to $107.80/barrel as compared to $111.30/barrel.
While the under-recovery on diesel has come down substantially, the under-recoveries on LPG cylinder and PDS kerosene have gone up for the fortnight. The under-recoveries on LPG cylinder and PDS kerosene have gone up from Rs. 470.38/cylinder and Rs. 36.83/liter, to Rs. 532.86/cylinder and Rs. 38.32.litre respectively for the fortnight.
The OMCs have reported under-recoveries to the tune of Rs. 25,579 crore for Q1 (April-June 2013) on diesel, PDS kerosene and domestic LPG. The highest was on diesel at Rs. 10,554 crore, followed by domestic LPG at Rs. 8,518 crore and PDS kerosene at Rs. 6,507 crore.