IOC, HPCL & BPCL are losing Rs265 crore a day on fuel subsidies

The State-run oil companies currently sell petrol at a loss of Rs6.68 per litre, while the loss is Rs5.81 a litre on diesel, Rs18.42 per litre on PDS kerosene and Rs265.27 per 14.2-kg LPG cylinder

State-owned Indian Oil Corp (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) are collectively losing Rs265 crore per day on selling fuel below cost and may end the fiscal with a Rs87,440 crore revenue loss, reports PTI.

“International crude oil prices have firmed up in April and retailers are losing a little less than Rs 265 crore per day on selling petrol, diesel, domestic LPG and kerosene,” an industry official said.

IOC, BPCL and HPCL currently sell petrol at a loss of Rs6.68 per litre, while the loss is Rs5.81 a litre on diesel, Rs18.42 per litre on PDS kerosene and Rs265.27 per 14.2-kg LPG cylinder.

The official said that the three fuel retailers lost Rs47,960 crore on selling fuel below cost in the 2009-10 fiscal.

“This fiscal, under-recoveries (revenue loss) are expected to widen to Rs87,440 crore,” he said.

The government has not yet said how it will make up for the projected losses for this fiscal.

“There is an agreed formula to share under-recoveries for 2009-10, but there is no word for the current year,” the official said.

For FY’10, losses on petrol and diesel are to be met by upstream firms like ONGC and the government was supposed to shoulder the under-recovery on cooking fuel. However, the government has not kept its part of the deal.

Of the Rs29,353 crore revenue loss in the April-December period, upstream firms contributed Rs8,364 crore to cover for the entire shortfall on petrol and diesel. But in the case of the Rs20,989 crore loss on LPG and kerosene in the first nine months, the finance ministry has provided only Rs12,000 crore.

Besides the Rs8,989 crore uncovered amount in the April-December period, about Rs12,000 crore of revenue loss on LPG and kerosene in the January-March quarter remains uncovered.

The official said that IOC, BPCL and HPCL have received Rs12,000 crore to make up for part of the losses on LPG and kerosene in 2009-10.

IOC got Rs7,100.18 crore, BPCL Rs2,370.77 crore and HPCL Rs2,529.05 crore.

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Gold recovers on fresh buying, firm global cues

Scattered buying by stockists and jewellery fabricators for the marriage season and reports of firming global trends boosted gold prices

Gold prices today rose marginally by Rs15, snapping their three-day losing streak in the bullion market on fresh buying by stockists and jewellery fabricators, reports PTI.

Standard gold and ornaments recovered by Rs15 each to Rs17,025 per 10 gram and Rs16,875 per 10 gram, respectively. Sovereign closed flat at Rs14,050 per piece of 8 gram.

Silver, however, dropped by Rs50 to Rs28,050 per kg on poor industrial demand.

Market analysts said that scattered buying by stockists and jewellery fabricators for the marriage season and reports of firming global trends boosted gold prices.

In the global market, which normally sets the price trend on the domestic front, gold rose by $4 to $1,158.80 an ounce in New York, last evening.

Silver ready dropped by Rs50 to Rs28,050 per kg and weekly-based delivery shed Rs5 at Rs27,865 per kg.

Silver coins continued to trade around the previous level of Rs33,600 for buying and Rs33,700 for selling of 100 pieces.
 

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Ash clouds in Europe: Many West-bound Indian flights cancelled

Spokespersons from Air India, Jet Airways and Kingfisher Airlines have said that they have suspended operations to and from Western destinations due to closure of airspace after the eruption of a volcano in Iceland

All long-haul flights between India and Britain, the US, Canada as well as some other European cities were cancelled or indefinitely delayed today as airspace remained closed over several North European airports due to drifting ash from a volcano in Iceland, reports PTI.

Spokespersons of Air India, Jet Airways and Kingfisher Airlines said that they have suspended operations to and from these destinations due to closure of airspace.

All West-bound flights of Air India were suspended from this afternoon for the next 48 hours, a spokesperson of the national carrier said.

Similarly, Jet Airways announced indefinite delay in its flights to London’s Heathrow airport and its European hub Brussels that were scheduled for departure today.

These included onward flights from Brussels to JFK Airport in New York, Newark and Toronto, a spokesperson said.

Due to closure of Heathrow and Brussels Airports, Jet Airways has announced an indefinite delay of its flights bound for Europe.

A spokesperson also said that Jet Airways was working with the authorities to obtain the required permission to reschedule the flights at the earliest and said all penalties for cancellation or rescheduling of travel plans have been waived.

Kingfisher also cancelled four flights between London (Heathrow) and Delhi and Mumbai scheduled today.

Passengers have been advised to call the airline office to know their flight schedule before proceeding for airports, officials said.

Ash clouds from the Icelandic volcano continued to hang over European skies today shutting down major airport hubs like Frankfurt, London and Paris for the second day.

The British Air Traffic Control has prohibited aircraft from entering certain parts of airspace over the UK as flying ash can compromise visibility and debris can be sucked into the engines of aircraft.

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