Indian Oil Corporation (IOC), the country’s biggest petroleum retailer, on Tuesday sought a hike in prices of petrol, diesel, domestic LPG nad kerosene.
Q2 net soars; sales decline marginally
NEW DELHI: Indian Oil Corporation (IOC), the country’s biggest petroleum retailer, on Tuesday sought a hike in prices of petrol, diesel, domestic LPG and kerosene distributed through public distribution system (PDS) on account of high crude oil prices that may result in a revenue loss of over Rs 8,500 crore this fiscal.
“The government had taken a decision of sharing the burden of rising international oil prices equally between oil companies, the government and the consumers. I want the burden-sharing mechanism to be implemented ... let the consumers pay,” Indian Oil Corporation chairman Sarthak Behuria told a news conference.
He said while the government and oil companies were bearing their share of the burden, the consumers have so far been spared of any hike in fuel prices despite crude oil touching a historic high.
Behuria was talking to reporters after announcing a 32% rise in net profit in second quarter ended September 30 as a stronger rupee reduced crude import costs and pared overseas loan repayments.
Net profit rose to Rs 3,817.75 crore in July-September from Rs 2,883.59 crore a year ago after taking into account Rs 6,362 crore bonds from the government.
Net sales was marginally lower at Rs 49,410.98 crore when compared with Rs 49,995.17 crore in July-September 2006.
On the other side of the situation is Oil and Natural Gas Corp (ONGC) that reported a 22% rise in net profit for the second quarter ended September 30 despite paying Rs 3,799 crore to subsidise cooking fuel prices.
Net profit rose to Rs 5,097.48 crore in July-September from Rs 4,173.98 crore in the same period a year ago.
The Indian basket of crude oil is at an all-time high of $85.87 a barrel.
“It is a matter of grave concern to us. Of greater concern is the rising prices of products like kerosene which has crossed $100 a barrel and diesel that is at $98.6 a barrel, as this is the price we have to pay refineries but are unable to pass on the same to consumers,” Behuria said.
InidanOil was currently losing Rs 96 crore on petrol, diesel, domestic LPG and PDS kerosene sale.
“This will rise to Rs 121 crore from November 1 (when prices would be calculated on the basis of average of second fortnight of October).”
Government-owned oil firms are currently losing Rs 3.90 per litre on petrol, Rs 6.22 a litre on diesel, Rs 15.99 a litre on kerosene and Rs 174.17 on every 14.2-kg LPG cylinder.
These losses would widen to Rs 4.94 a litre on petrol, Rs 6.50 a litre on diesel, Rs 16.42 a litre on kerosene and Rs 207 a cylinder on LPG from November 1.
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