Loaded with rising subsidy burden, state-owned Hindustan Petroleum Corporation Ltd (HPCL) on Friday reported increased loss of Rs.3,080.26 crore in the quarter ended June 30, 2011.
Attributing the widening of the loss to not getting fully compensated for selling fuel below cost, HPCL Director (Finance) B. Mukherjee said the net loss in the April-June quarter stood at Rs.3,080.26 crore which was higher than the net loss of Rs.1,884.29 crore in the same period in the previous fiscal.
HPCL lost Rs. 9,502 crore on selling diesel, domestic LPG and kerosene at government-controlled rates in the quarter. Of this, it got Rs. 3,167 crore from upstream firms like ONGC and another Rs. 3,275 crore from the government by way of cash subsidy. “The net under-recovery stood at Rs.3,060 crore in Q1. The company is currently losing about Rs.4 per litre on diesel, Rs.23 a litre on kerosene and Rs.274 per 14.2-kg LPG cylinder,” he added.
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BPCL earned $1.09 on turning every barrel of crude oil into refined petroleum products fuel in the April-June quarter as compared to a gross refining margin of $3.72 a barrel in the corresponding period of the previous fiscal. Revenue soared from Rs.31,644.67 crore for the quarter ended June last year to Rs.40,437.67 crore in the first quarter this fiscal.