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BPCL expects oil bonds worth Rs 2,500 crore

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Press Trust of India Mumbai
Last Updated : Jan 20 2013 | 11:39 PM IST

PSU refiner, Bharat Petroleum Corp (BPCL), is expecting to receive oil bonds worth Rs 2,500 crore from the Finance Ministry to make good its losses for selling petrol, diesel, kerosene and LPG at-below market rates.

"We currently have oil bonds worth Rs 10,100 crore and are expecting another Rs 2,500 crore from the government soon. But this is subject to Parliamentary approvals," BPCL Chairman and Managing Director, Ashok Sinha, told reporters here.

The oil PSU said it has pledged bonds worth about Rs 1,000 crore since the beginning of the current fiscal year.

Downstream firms Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum sell auto and cooking fuels at Government- mandated rates to rein in inflation. They are, in turn, compensated through oil bonds and one-third subsidy is given by upstream firms like ONGC, Oil India and GAIL.

Sinha said BPCL currently loses Rs 3.94 on every litre of petrol and Rs 2.70 on every litre of diesel.

The company loses Rs 146 per 14.2 kg LPG cylinder, while on per litre of kerosene it incurs a loss of Rs 16.

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The crisis in the aviation industry, triggered by volatile crude prices, has also affected sales volume of aviation turbine fuel (ATF) or jet fuel, Sinha said.

"Our volume has gone down from 917 kilolitre to about 700 kilolitre. This is likely to have a negative impact of about Rs 20 crore on our PAT," Sinha said.

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First Published: Sep 09 2009 | 4:44 PM IST

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