Indian Oil Corporation (IOC) is estimated to incur losses in Q2-2005 and its gross under recoveries will rise to Rs 7,300 crore by September 15. If the government first saves IBP Ltd, Hindustan Petroleum and Bharat Petroleum from slipping in the red, it would consequentially help IOC, which had larger refining capacity and was more capable of bearing the underrecovery burden.
Based on the fortnightly average of the Indian basket, as on August 31, oil marketing companies were incurring a loss of Rs 7.50 a litre on petrol, Rs 5.50 on diesel and Rs 12 on kerosene while a cylinder of LPG was being sold Rs 96 below the import parity price.
The underrecoveries during April 1-September 15 for petrol stood at around Rs 460 crore, diesel Rs 2,740 crore, kerosene Rs 2,980 crore and LPG Rs 1,175 crore.
02-Sep-05 
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