New Delhi, May 16: Faced with a whopping Rs 200,000 crore revenue loss on fuel sales this fiscal, state-run oil firms have decided not to issue new domestic LPG connections and fix quota for the existing customers so as to make ends meet within the existing collections.

Marketing Directors of Indian Oil, Hindustan Petroleum and Bharat Petroleum in a joint petition to the Petroleum Ministry on Thursday suggested cost cutting measures as their losses on sale of petrol, diesel, LPG and PDS kerosene mounted to over Rs 550 crore a day, a top official said.

Government's bar on oil firms to raise fuel prices despite cost of raw material (crude oil) doubling to over 120 dollars a barrel is likely to see the three firms end the current year with a revenue loss of Rs 200,000 crore. Last year, the revenue loss was Rs 77,304.50 crore.

"Oil companies are borrowing Rs 3,500 crore per month to keep their operations. Our borrowings (for the three firms) have reached Rs 65,000 crore. We have suggested measures that will at least limit the losses at existing levels," he said.

Stopping issuance of new LPG connections would help limit the Rs 305.90 per cylinder loss. Besides, quota per family will be fixed and expansion of retail network put on hold.