NEW DELHI: Indian Oil Corporation (IOC) Other state-owned fuel retailers have suffered inventory losses of more than 10,000 crore Ahead of petrol and diesel price revision and rupee depreciation, Rs 100 crore is under financial pressure.

The IOC and Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) are expected to decide on revision of petrol and diesel prices tomorrow, demanding a reduction in interest rates due to falling oil prices.

However, the companies regretted the revision of petrol and diesel prices. It is not set on the basis of crude oil price movement. It is based on gasoline. (petrol) and diesel (diesel) based on the international trade rate and the rupee-dollar exchange rate.

According to industry sources, the rupee has fallen against the dollar since the December 16 revision, making imports more expensive.

The rupee later traded at Rs 63.46 per dollar before Rs 61.95 per dollar, reflecting the fall in prices.

Further, margins are said to have been reduced by half to $8 to $9 per barrel due to the difference in prices of raw materials (crude oil prices) and products.

Oil prices continue to fall despite the plunge in international oil prices. Rising gasoline and diesel prices usually mean inventory losses for oil companies because crude oil is purchased at the same price, but its market value drops in processing and sales.

A senior source said the three state-run oil companies suffered inventory losses of Rs 5.3 billion between April and September, and that inventory losses have increased “two to three times” since then.

The oil companies believe that keeping people well informed, the expectation of a fall in retail prices depends not only on crude oil prices.

They said that as per the practice of bi-weekly rate adjustments on the 1st and 16th of the month, the announcement of the price cut can only be made tomorrow night and the interests of the oil companies will be affected.

The last price cut for petrol and diesel was on December 16 daily at Rs 2 per liter. This is the eighth consecutive reduction in petrol prices since August and the fourth reduction in diesel prices since October.

Petrol prices in Delhi today touched a 44 one-month low of Rs 61.33 per liter. Petrol price is at its lowest level since July 2013 at Rs 50.51 per liter.

Since August, petrol prices are lower by Rs 12.27 per liter and diesel prices by Rs 8.46 per liter.

The reduction could be even greater if the government decides to take the chances of crude oil prices plummeting to around $600 per barrel of 60 barrels. The excise duty on petrol has been increased by Rs 3.755 per liter and on diesel by Rs 2.50, a reduction of Rs 106 crore.

Crude oil prices stood at $115 per barrel in June.