Indian Oil [Get Quote], Hindustan Petroleum and Bharat Petroleum are likely to incur a revenue loss of Rs 1,80,000 crore (Rs 1,800 billion on fuel sales during the current fiscal after surge in global crude prices and weakening rupee widened losses.

India imports 73 per cent of its crude oil import needs and the cost of imports would spiral after crude inched closer to a record $125 per barrel, while rupee touched its 13-month low, official sources said.

The basket of crude oil India imports was at $120.65 per barrel on Thursday, a 91 per cent jump over the last fiscal's lowest price of 62.91 dollars recorded on May 9, 2007, official sources said.

The under-realisation on sale of petrol, diesel, domestic LPG and kerosene in 2008-09 was previously put at Rs 1,50,000 crore (Rs 1,500 billion). But with rising crude and weakening rupee, the losses may now total Rs 1,80,000 crore.

The three firms lost Rs 77,304.50 crore (Rs 773.04 billion) on fuel sales in 2007-08 but the finance ministry allowed a revenue loss of just over Rs 70,500 crore (Rs 705 billion) for the purpose of government compensation.

The government at present compensates 42.7 per cent of the revenue loss through issue of oil bonds. This may be raised to 50 per cent.

Sources said the oil firms were, at present, losing Rs 16.34 a litre on petrol, Rs 23.49 per litre on diesel, Rs 305.90 per LPG cylinder and Rs 28.72 a litre on kerosene.

Loss figures for petrol and diesel are calculated based on average price of oil in a fortnight while those for LPG and kerosene are based on monthly average.

The losses have widen from Rs 13.97 a litre on petrol and Rs 20.97 per litre on diesel this fortnight, sources said.