Oil marketing firms losing Rs 518 crore per day

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Oil marketing companies are losing Rs.518 crore per day on sale of diesel, kerosene and domestic liquefied petroleum gas (LPG), government data showed on Tuesday.

Oil retailers are expected to lose Rs.13.91 on sale of each litre of diesel in the first fortnight of May, while under recoveries on domestic LPG are pegged at Rs.480.50 per cylinder, according to data released by the petroleum and natural gas ministry here.

Marketing firms are losing Rs.31.49 on the sale of every litre of kerosene through the public distribution system.

An empowered group of ministers headed by Finance Minister Pranab Mukherjee is likely to meet later in May to work out a mechanism to cut losses of oil marketing firms like Indian Oil, Hindustan Petroleum and Bharat Petroleum.