Mumbai: Public sector oil companies are expected to end the current fiscal with a revenue loss of nearly Rs1,80,000 crore on the sale of of petrol, diesel, LPG and kerosene, petroleum minister Murli Deora told a meeting called to review the financial health of oil companies.

With the losses on fuel sales widening, Indian Oil Corporation is likely to end the fiscal with a net loss of Rs5,800 crore, while Bharat Petroleum and Hindustan Petroleum may each see losses of Rs7,000 crore and Rs5,500 respectively, he said.    

Oil bonds to be released by the government are expected to cover Rs95,000 crore, while upstream companies like ONGC would absorb Rs45,000 crore, he added.    

The government makes good the shortfall in price realisation on fuel sales through oil bonds.  

And, if crude prices remain at the current level of $115 per barrel, fuel retailers IOC, BPCL and HPCL would end the year with net losses, he said.    
  
''For the first quarter, the finance ministry has agreed to give oil bonds for 50 per cent of the Rs48,865 crore revenue loss on fuel sales," petroleum secretary RS Pandey said after the meeting.       

IOC, BPCL and HPCL will receive the bonds for the first quarter of the current fiscal and those for the last quarter of 2007-08 after the Parliament approves the supplementary budget, probably at the nest session of parliament due in September-October.