Challenges of under-recoveries of petroleum products

Standing Committee on Petroleum & Natural Gas present this ninth report on "Challenges of Under-recoveries of Petroleum Products". The term "under-recovery" has been used by the Government for "losses" experienced by the public sector oil marketing companies due to incomplete cost recovery on selling of petroleum product in the market. Report of the high powered Committee on financial position of oil companies under Shri B.K. Chaturvedi have also observed that the refining-cum-oil marketing companies IOCL, BPCL, HPCL stand to lose to the extent that they are unable to pass on to the customer the increase in cost on account of more expensive crude oil due to restraints on the retail selling prices of refined products imposed by the Government.