New Delhi: Hindustan Petroleum Corp Ltd (HPCL), country's second largest refinery, is making a profit of Rs 4 per litre on petrol and 90 paise a litre on diesel due to softening of international crude prices.
"We have started making a marginal profit of 90 paise per litre on the sale of diesel," HPCL Director (Finance) C Ramulu told reporters on Wednesday.
He, however, said the company continued to lose money on a daily basis due to selling LPG and kerosene far below the production cost. "We continue to lose Rs 140 on every cylinder of cooking gas and Rs 14 per litre on kerosene," he said.
Ramulu said the Indian basket of crude was at present hovering around $57 a barrel mark and should complete the current financial year at an average of $64-65 a barrel.
The international crude prices have fallen after reaching a high of $75 per barrel in August this year. The easing of international crude prices has prompted the UPA Government's coalition partners to ask for a reduction in domestic fuel prices.
Petroleum Minister Murli Deora had said a few days back that his ministry is studying the impact of easing global crude prices on the retailers. Petroleum Secretary M S Srinivasan said, "The prices need to fall below $52 a barrel to make a case for reduction in the prices of petrol and diesel."
The Government estimates the revenue loss to oil firms at around Rs 73,500 crore in the current financial year due to generally high crude prices. India imports 70 per cent of its crude oil requirement.
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