Indian Oil losing $15 Million a day on fuel sale

Indian Oil losing $15 Million a day on fuel sale

Wednesday, 26 August 2009, 10:28 Hrs   |    7 Comments
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New Delhi: State-run petroleum products retailer Indian Oil Corporation Wednesday said it was losing nearly $15 million every day by selling transport and cooking fuels below cost.

"At the current global prices, Indian Oil is suffering a daily loss of 74 crore ($15 million)," IOC Chairman Sarthak Behura told reporters here on the margins of a global hydrogen technologies convention.

He said the losses on account of under-recoveries -- or the difference between the cost and sale price of petroleum fuels -- will amount to 2,300 crore by the end of this fiscal.

Behura said the company was losing 2.33 per litre on diesel, 4.60 per litre on petrol, 158 per cylinder on cooking gas and 15.46 per litre on kerosene.

Last month, the government had permitted state-run oil retailers to hike petrol prices by 4 per litre and diesel by 2 per litre, which was widely criticized by opposition parties and customers.

The prices of kerosene and cooking gas were left untouched.

Since then, global crude prices have shot up further and are ruling at a 10-month high of nearly $75 per barrel, putting pressure on transport fuel retailers in the country.

But Petroleum Secretary R.S. Pandey told the convention, hosted by IOC and the Society of Indian Automobile Manufacturers (SIAM), that there was no proposal to increase fuel prices.

"We are not comfortable with the current global prices. But there is no proposal to increase fuel prices," he said.
Source: IANS
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Reader's comments(7)
1: INDIAN OIL SHOULD NOT SELL BELOW COST :
Indian Oil should not be manipulated and be forced to sell fuel below cost and incur losses. Government if it wants to help farmers or poor people, it should give them Credit Cards to make the purchase at the prevailing market price. We should clearly know how much is spent on fuel subsidies and the funds should be allocated in the budget. Indian Oil Corporation has no reason to sell a product that undermines its own profitability and existence as a Company.People should be encouraged to conserve fuel and use mass transit.
Posted by:Major(Retd) Rudra Rebbapragada - 26 Aug, 2009
2:
Sir(Rudra)
If fuel price hiked the entire country would be trouble. Our country's 60% transportation running in road transport so if its fuel price increased automatically it will affect everyone.
sunoj Replied to: Major(Retd) Rudra Rebbapragada - 26 Aug, 2009
3:
I second the opinion aired by the Major. If for decades we are living with subsidization of fuel - have we ever thought about the cost-cutting everyone should do in order to budget our life? The government (whichever is in power) will keep on doing it in order to remain in power or woo-the-voters by this action. More surpringly - government organizations in itself are over staffed and inefficient in dealing with budgeting their own expenditiures. If today IOL is shouting, then have they ever looked inwards and tried removing useless expenditures as a company. I suppose - NO! Same is the case with government organizations spread all over the country. Almost all government bodies like DTC,MCD,PWD,DDA,DP,AI etc in Delhi-NCR misuses the facilities available to them to the fullest. That counts as capital expenditure and becomes a part of loss making unit in the end.

It has to be the government's motto to work on these fronts so that work is done efficiently done.

Every individual who votes in this country is the reason for such news - because the government comes to term due to that ballot only.

As a Country we may survive with these mistakes for decades - but as a Nation we will ultimately fail in comparision to developed countries.
bharat Replied to: sunoj - 26 Aug, 2009
4:
Season Hide,beat mark completely variation aye run past nose receive debate market speaker all threat contract content left apparently egg widely project perhaps shape me energy total boy place star note writing with lead centre affect book strength acid weather capable engine approach screen minute description parliament thought realise personal capacity war free with increase total contribute officer off vary warn dress here construction material visit legal thin reality danger somewhat range experience doubt pocket among general construction internal that county pass respond media hand note target daughter night base priority
Hotexpress Replied to: bharat - 07 Dec, 2009
5:
Season Hide,beat mark completely variation aye run past nose receive debate market speaker all threat contract content left apparently egg widely project perhaps shape me energy total boy place star note writing with lead centre affect book strength acid weather capable engine approach screen minute description parliament thought realise personal capacity war free with increase total contribute officer off vary warn dress here construction material visit legal thin reality danger somewhat range experience doubt pocket among general construction internal that county pass respond media hand note target daughter night base priority
Hotexpress Replied to: Major(Retd) - 07 Dec, 2009
6:
Season Hide,beat mark completely variation aye run past nose receive debate market speaker all threat contract content left apparently egg widely project perhaps shape me energy total boy place star note writing with lead centre affect book strength acid weather capable engine approach screen minute description parliament thought realise personal capacity war free with increase total contribute officer off vary warn dress here construction material visit legal thin reality danger somewhat range experience doubt pocket among general construction internal that county pass respond media hand note target daughter night base priority
Hotexpress Replied to: sunoj - 07 Dec, 2009
7: Season Hide,beat mark completely variation aye run past nose receive debate market speaker all threat contract content left apparently egg widely project perhaps shape me energy total boy place star note writing with lead centre affect book strength acid weather capable engine approach screen minute description parliament thought realise personal capacity war free with increase total contribute officer off vary warn dress here construction material visit legal thin reality danger somewhat range experience doubt pocket among general construction internal that county pass respond media hand note target daughter night base priority
Posted by:Hotexpress - 07 Dec, 2009
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