Consequently, the loss incurred by the oil companies because of selling LPG at subsidized rates fell from INR316 per 14.2-kg cylinder to INR306 in April 2008.
Indian Oil, Bharat Petroleum and Hindustan Petroleum have been reportedly losing over INR5.5 billion per day currently because of subsidies on petrol, diesel, cooking gas and kerosene. The loss was about INR4.7 billion in April 2008. Rising fuel prices have increased the losses.
Business Standard has quoted a senior official of IOC as saying: The fall in global LPG prices has been the only bright spot in an otherwise grim market for us.
But for the decline in LPG prices, the loss could have been much higher, the official has said. However, losses for May are expected to be higher as LPG already rose by about 5.3% to $854 per ton.
The prices of automobile LPG cylinders also fell by INR0.83 per liter in the first week of May 2008.
