Oil PSUs set to lose Rs70,000cr in FY11

State-owned refiners may lose Rs 70,000 crore ($15.4 billion) in revenue in the year beginning April 1 from selling fuel at below market prices, oil secretary Sthanunathan Sundareshan said.

Their revenue loss may be Rs 45,000 crore in year ending March 31, Sundareshan said at an event in New Delhi on Wednesday. The introduction of a fuel emission standard, Euro IV, will add 41 paise per litre to the refinery cost of petrol and 26 paise to the cost of producing a litre of diesel, he said.

India's total energy consumption may more than double by 2030 to 833 million tonne of oil equivalent, based on current trends, driven by population growth and an industrial build-up, according to the Paris-based International Energy Agency.

Demand for fuel in the country may rise as growth in the $1.2 trillion economy accelerates and output from aging domestic fields declines. The finance ministry expects gross domestic product to expand 8% in the year starting April 1.

Source BloombergUTV

Lable Oil and Gas Sector,Indian Economy/policy