State-run oil marketing firms losing Rs 271 cr a day

New Delhi : State-run oil marketing companies — IndianOil, Bharat Petroleum and Hindustan Petroleum — are incurring a daily loss of Rs 271 crore. These firms are expected to incur an under-recovery of over Rs 121,000 crore during this financial year, compared to Rs 78,000 crore in 2010-11.

Addressing a meeting of the Consultative Committee of Parliamentarians attached to his ministry in Mumbai on Monday, petroleum minister Jaipal Reddy said the exchange rate, which was Rs 46 per US dollar at the beginning of September, was hovering around Rs 49. “Weakening by every Rs 1 impacts the cost of diesel, PDS (public distribution system) kerosene and domestic LPG (liquefied petroleum gas) by Rs 8,000 crore per annum," he said.