State-owned oil marketing companies (OMCs) have petitioned the Petroleum and Natural Gas Ministry seeking permission to hike diesel prices by Rs. 2 to 3 per litre to cut down their mounting losses due to depreciating rupee, which has made oil imports costlier.
Losses on sale of diesel which had dropped to Rs.3 in May have gone up to Rs.10.22 per litre. The petition for a diesel price hike has been pending with the Ministry for almost a fortnight now, and a decision is expected only after the conclusion of the monsoon session of Parliament, which has been extended till September 6.
Indian Oil Corporation (IOC) Director (Finance), P.K. Goyal, said the total losses on diesel and domestic LPG, estimated at Rs. 80,000 crore at the beginning of the fiscal, had now widened to Rs. 140,000 crore. “The value of rupee has depreciated 12 per cent since April. “It was Rs. 59.39 to a dollar, and today it has reached Rs. 64.10, ’’ he said.