Appreciation of the rupee has stemmed rising losses of the oil marketing companies, despite the price of the Indian basket of crude oil hovering above $65 per barrel over the last month, against an average of $60 a barrel in March.

If the rupee value remained at 43 to the dollar, which was seen in the first week of April, the industry's daily losses would have been 5-10 per cent higher, according to industry officials.

"Had the rupee remained at 43 against the dollar in the weeks thereafter, the industry's losses would have been close to Rs 155 crore (Rs 1.55 billion) per day," an industry official said.

For the fortnight beginning May 1, industry losses are seen at Rs 140-150 crore (Rs 1.4-1.5 billion) a day, against Rs 140 crore per day recorded in the last fortnight (Apr 15-30). Losses in the first half of April were at Rs 120 crore (Rs 1.2 billion) a day.

State-owned refiners work out the refinery gate prices for petrol and diesel at the beginning of every fortnight, based on the average price in the last 15 days.

The revenue loss on the other two subsidised petroleum products - LPG and kerosene - is calculated on a monthly basis.

The country's largest refiner of crude oil and marketer of petroleum products, Indian Oil Corporation, is currently losing Rs 5.20 per litre of petrol that it retails. In the second fortnight of April, the company was losing Rs 5.17 a litre of petrol.

"We will lose Rs 76 crore (Rs 760 million) a day over the next fortnight if we continue to sell petrol, diesel, LPG and kerosene at the present prices.

This is primarily due to a strong rupee value against the dollar which has pulled down our crude oil import costs," an IOC official said.

Meanwhile, the petroleum ministry is likely to consider a hike in prices of petrol and diesel in mid-May in order to bail out the oil marketing companies from the huge losses they are incurring.

"The government does give them oil bonds. But the losses are mounting and a price hike looks imminent," an official in the petroleum ministry said.

The company said that it expects to lose Rs 4.40 a litre of diesel over the next fortnight, which is marginally down from the Rs 4.67 a litre for the fortnight ended March 31. In volumes, diesel sales are three times that of petrol. Revenue loss on diesel sale during April 1-15 stood at Rs 3.12 a litre.

IOC's revenue loss on kerosene sale during the current month is pegged at Rs 14.70 a litre as against a loss of Rs 13.79 a month earlier.