The freefall in global crude oil prices, which have even breached the five-year low mark, will help in cutting revenue losses on fuel sales by around 10 per cent to Rs77,000 crore during the current fiscal, said Petroleum Secretary Saurabh Chandra on Friday.
Revenue loss, known as under-recoveries or the difference between imported cost and retail selling price, will go down further to about Rs 40,000 crore if the global oil prices stabilise at current levels of $50 per barrel. “The under recoveries as per the latest calculation will be about Rs77,000 crore as compared to Rs85,000 crore previously estimated,” he told reporters on the sidelines of a power conference. Chandra said the under recoveries may come down further if the international crude oil prices fall.