IOC registers fall in under-recovery on sale of fuel

MUMBAI: Softening crude oil prices coupled with appreciation in the value of rupee against the US dollar has brought down the under-recovery of Indian Oil Corporation (IOC), a top official said.

"Petrol and diesel are no more a profitable business as the under-recovery is Rs 80 crore per day," IOC's Director G C Daga told at the sidelines of Retail Forum 2007.

"Earlier in the year it touched Rs 110 crore and it has come down now," Daga said.

He said, "The decline in under-recovery is attributed to softening of crude oil prices coupled with appreciating Rupee against the dollar."

Daga said the company would increase the number of fuel retail outlets in rural areas. It would open 1,000 Kissan Seva Kendras and would invest Rs 1,300 crore in 2007-08, he added.

"Our seva kendras are doing well as the farmers are getting petrol and diesel from the nearby outlets... it has become more convenient for them," he said. Earlier they had to travel long distances to get petrol.

He said the total investment would include outlay on 500 petrol pump, 1,000 Seva Kendras and also initiatives on LPG.