Diesel Under-Recovery rises to Rs 8.37/litre for the fortnight commencing 1.3.2014

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 2nd fortnight of February 2014.

Accordingly, the under-recovery on High Speed Diesel (HSD) applicable for Ist fortnight of March effective 1.3.2014 rose to Rs 8.37 per/litre. This was Rs 8.31 per litre during 2nd fortnight of February 2014 w.e.f. 01.2.2014. In the case of PDS Kerosene and Domestic LPG the under-recoveries for the month of March 2014 are Rs 36.34 per litre and Rs 605.80 per cylinder respectively.

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

Product Unit

Under-recoveries effective 16.02  2014

( Previous fortnight effective 1.2 2014)

Diesel Rs/Litre                              8.37               (8.31)
PDS Kerosene* Rs/Litre                            36.34              (35.76)
Domestic LPG* Rs/Cylinder                          605.80            (655.96)

 *Additionally, a subsidy of Rs 0.82/Litre on PDS Kerosene and Rs 22.58/Cylinder on Domestic LPG is provided by the Government and their refinery-gate prices are fixed on monthly basis.

Oil Marketing Companies (OMCs),   effective 1, March 2014, are now incurring combined daily under-recovery of about Rs 411 crore on the sale of Diesel, PDS Kerosene and Domestic LPG. This is  higher than Rs 456 crore daily under-recoveries during previous fortnight effective 01.03.2014.

Further, the OMC’s reported a total of Rs 1, 00,632 crore as under-recoveries during 1st Nine months of 2013-14 (April-December) on Diesel, PDS Kerosene, Domestic LPG. Following are product-wise details of the under-recoveries

Product

 

Under Recovery (Rs/Crore)

 

2013-14

   (April-December 2013)

2012-13

2011-12

2010-11

Diesel

47,655

92,061

81,192

34,706

PDS Kerosene

22,373

29,410

27,352

19,484

Domestic LPG

30,604

39,558

29,997

21,772

Petrol

 

2,227

Total

1,00,632

1,61,029

1,38,541

78,190

Regarding international crude oil price of Indian Basket as computed/published today by PPAC the price went down to US$ 106.44 per barrel (bbl) on 28.2.2014 as against US$ 106.62 per bbl on previous trading day of 27.2.2014.

In rupee terms also, the price of Indian Basket increased marginally to Rs 6606.73 per bbl on 28.02.2014 as compared to Rs 6604.04 per bbl on 27.02.2014. This was due to price rise in dollar terms and rupee appreciation. Rupee closed weaker at Rs 62.07 per US$ on 28.02.2014 against Rs 61.94 per US$ on 27.02.2014.

The table below gives details in this regard

Particulars     Unit Price on February 28, 2014 (Previous trading day i.e. 27.02.2014)  For Pricing Fortnight February 13 to 26, 2014(Effective 1.3.2014)
Crude Oil (Indian Basket) ($/bbl)

      106.44           (106.62)

  107.14

(Rs/bbl           6606.73         (6604.04)

6655.54

Exchange Rate   (Rs/$)

        62.07            (61.94)

    62.12

Diesel