Ministry of Petroleum and Natural Gas of the Repub : Under-Recovery on Diesel Effective 01.01.2013 goes past at Rs 9.03 per litre mark

January 04, 2013 at 04:35 pm IST

MarketScreener.com By

Under-recovery for December on Domestic LPG, and PDS Kerosene remain high
OMCs Incurring Daily Under-Recoveries of Rs 389 Crore
Crude Oil Price for Indian Basket went down to US$ 108.46 per barrel on 31.12.2012

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 2ndFortnight ofDecember 2012. Accordingly, the under-recovery on High Speed Diesel (HSD) applicable for Ist fortnight of December effective 01.01.2013 has decreased to Rs9.03 /Litre. This was Rs 9.28 per litre effective 01.12.2012 for 2ndfortnight of December 2012. In case of Domestic LPG the under-recovery for January 2012 is no change i.e. to Rs 490.50 cylinder for January 2013. The Under-recovery on PDS Kerosene too has remained at same level of Rs 30.64 per litre for January 2012.

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

Product	Unit	Under-recoveries effective January 01, 2012 (Effective 16.12.2012 to 31.12.2012)
Diesel	Rs/Litre	9.03(9.28)
PDS Kerosene*	Rs/Litre	30.64(30.93)
Domestic LPG*	Rs/Cylinder	490.50(520.50)

*Additionally, a subsidy of Rs0.82/Litre on PDS Kerosene and Rs22.58/Cylinder on Domestic LPG is provided by the Government. The under-recoveries on these products are computed on monthly basis.

OMCs are currently (effective 01 January 2013) incurring daily under-recovery of about Rs389 crore on the sale of Diesel, PDS Kerosene and Domestic LPG. This was Rs 420 crore per day for the previous fortnight effective 16.12.2012.

Further, the OMC's have reported the following under-recoveries during April-September 2012:

Product

Under Recovery (

3. Details of average International FOB price and Exchange rates are:

Particulars	Unit	Price on last trading day i.e., 31 December, 2012(Previous trading day of 28.12.2012)	Fortnight December)16-31, 2012 (previous fortnight 01 - 15/12/ 2012)
Crude Oil (Indian Basket)	($/bbl)	108.46(108.55)	107.76 (106.85)
Crude Oil (Indian Basket)	(Rs/bbl)	5941.44(5953.97)	5912.79 (5815.85)
Exchange Rate	(Rs/$)	54.78(54.85)	54.87 (54.43)