New Delhi, May 9 -- India's benchmark diesel price fell sharply by 75% to $150 a barrel on Friday, down from a record peak of $262.81 a barrel on April 7, providing major relief to state-run fuel retailers. Before the West Asia war broke out on February 28, the price stood at $86 a barrel. The price drop will substantially reduce the under-recoveries-or notional revenue losses-of public sector oil marketing companies (OMCs). Diesel constitutes about 40% of total petroleum product sales in the country, followed by petrol with a 20% share, people in the know said on condition of anonymity. "Under-recovery on diesel has dipped substantially, but on petrol, a marginal increase is witnessed," one person said. "They could now be losing Rs.25-30 per litre on diesel, a sharp decline from Rs.100 per litre two weeks ago." The person added that the loss on petrol could be around Rs.18-20 per litre. Under-recoveries are the difference between retail prices of auto fuels and their desired rates if domestic prices were aligned with international benchmarks. State-run OMCs-Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL)-which enjoy a monopoly in the domestic fuel retail business with over a 90% market share, did not respond to email queries. At an inter-ministerial press briefing on Friday, the petroleum ministry's joint secretary, Sujata Sharma, said the combined monthly under-recovery for petrol, diesel and cooking gas is about Rs.30,000 crore. She did not disclose details of per-unit under-recoveries on individual items. According to ministry records, state-run OMCs incurred an under-recovery of Rs.26 a litre on petrol and Rs.81.90 on diesel on March 27, when their respective benchmarks were at $127.67 and $178.76 a barrel. On April 23, when benchmarks for petrol and diesel increased to $128.64 and $204.05 a barrel respectively, the under-recovery on petrol was declared at around Rs.20 a litre, while diesel was stated to be Rs.100 a litre. Sharma said the government is protecting consumers by keeping petrol and diesel rates frozen through public sector OMCs, despite a spike in international oil prices. Instead of allowing OMCs to hike auto fuel rates, the government absorbed some of their losses, amounting to about Rs.14,000 crore a month, by reducing the excise duty on petrol and diesel by Rs.10 each on March 27. Simultaneously, it imposed levies on the exports of diesel and aviation turbine fuel (ATF) to prevent domestic fuel supplies from being diverted abroad. India is the third-largest oil importer after the US and China, importing over 88% of the crude it processes. Following the outbreak of the war in West Asia on February 28 and the subsequent closure of the key sea route via the Strait of Hormuz, international oil prices surged....