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Oilcos see profit on diesel after three years
Published on 16 Nov. 2008 12:26 AM IST
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Public sector oil retailing companies will earn profit on sale of diesel for the fortnight beginning November 16, after nearly three years, due to the softening crude oil prices, a top official with a state-owned retailer said on Friday. "According to the data compiled, as of Friday, profit on sale of diesel is 62 paise per litre. This may change a little as there are two more days left, but it is likely to be around 60 paise," the official said. State-owned retailers-Indian Oil Corp Ltd, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd-calculate the revenue loss or profit on sales at the start of each fortnight based on the average price of the products in the previous 15 days. In the current fortnight, which started November 1, the three state-run oil retailers are incurring a revenue loss of 96 paise per litre on sale of diesel. "The decline in crude oil prices has resulted in sharp fall in product prices, leading to positive margins in petrol and diesel," the official said. He said the last time state-owned oil retailers made profit on diesel sale was in 2005. "This will be a major relief for PSU oil marketing companies as revenue loss on diesel sale accounted nearly 60% of the total gross revenue loss during April-September," the official said. During April-September, the gross revenue loss of the three companies stood at Rs 92,853 crore, and revenue loss on diesel alone accounted for Rs 55,265 crore. The official said profit on sale of petrol during the fortnight is likely to be over Rs 8 per litre, which is nearly double the profit margin of Rs 4.12 during the current fortnight.

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