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IOC, BPCL, HPCL to lose Rs 50,000 cr due to under-recoveries

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

State-run refiners Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) are likely to incur losses of around Rs 50,000 crore in FY10 for selling petrol, diesel, LPG and kerosene at subsidised rates.

Under-recoveries of downstream firms have gone up in the past quarter with the three refiners losing Rs 4 per litre on petrol and Rs 2 on diesel per day, IOC Chairman Sarthak Behuria told reporters here today.

The three firms currently lose Rs 16 per litre on sale of kerosene and Rs 150 per cylinder each day, he said.

"The industry would lose around Rs 50,000 crore in FY10 out of which Rs 30,000 crore would be on account of (selling) kerosene and LPG (at subsidised rates)" Behuria said.

IOC is expecting to get oil bonds worth Rs 6,000 crore from the Finance Ministry, he said.

"I think it is under process and it should happen anytime," Behuria said.

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First Published: Sep 01 2009 | 9:46 PM IST

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