Financial Daily from THE HINDU group of publications
Friday, Sep 02, 2005
Financial Daily from THE HINDU group of publications Friday, Sep 02, 2005 |
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Corporate
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Performance IOC calls again for petro products price hike Our Bureau
New Delhi , Sept. 1 REELING under the constant threat of suffering revenue losses by selling fuel below the cost of production, Indian Oil Corporation (IOC) on Thursday once again renewed its appeal to the Government for raising the prices of four petroleum products — diesel, petrol, LPG and kerosene. Stating that the company's under recoveries on sale of these products during the period April 1 to September 15 is likely to be about Rs 7,355 crore, Mr Sarthak Behuria, Chairman, IOC, told press persons here, that "we will continue to face losses if the situation doesn't change." The company will be taking a hit of Rs 460 crore till September 15 this fiscal on petrol. On diesel it will take a hit of Rs 2,740 crore, another Rs 2,980 crore on kerosene and Rs 1,175 crore on cooking gas (LPG), he said. About the level of hikes that the company was looking for, Mr Behuria said that petrol prices should be raised by Rs 7.50 a litre and diesel by Rs 5.15 a litre. The prices of kerosene should be increased by Rs 12 a litre, while the price of 14.2-kilogram cooking gas cylinder (LPG) should be increased by Rs 96, he added. Oil marketing companies have been facing losses due to non-revision in the domestic retail prices of oil products. The combined revenue loss of all the state-run oil marketing companies is expected to touch Rs 40,000 crore in the current financial year in case the Government does not take steps to ease the subsidy burden of these companies. While maintaining that IOC's present refining margins would continue through this quarter, he said that the refinery margins were at $6.1-$6.2 a barrel. IOC would also be coming out with a bond issue of Rs 1,000 crore on September 6. The domestic bond issue is essentially to meet working capital requirement.
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