Government has asked state-run oil firms to stop indiscriminate setting up of petrol pumps in the country as it was one of the reasons for mounting revenue losses on fuel sales.

Indian Oil Corporation, Bharat Petroleum, Hindustan Petroleum, who currently own about 37,000 petrol stations in the country, have been asked by the Petroleum Ministry to stop indiscriminate expansion.

Government is discouraging state-run oil firms from setting up new outlets in already saturated markets. The companies can, however, set up new petrol pumps in the areas so far untouched by the retail network.

Despite price hike last month the oil companies are losing Rs 14.92 per liter on petrol, Rs 24.90 per liter on diesel, Rs 38.09 per liter on kerosene and Rs 338.53 per every cylinder of LPG.

The revenue losses of the oil firms amount to Rs 7.15 billion per day and the projected revenue loss of these companies for 2008-09 is Rs 2,114 billion.