Oil firms hit out at subsidies

The govt refusal on price hike is pushing them into bankruptcy, say oil firms.

The government's refusal to allow domestic oil companies to hike the retail prices of petroleum products was pushing them into bankruptcy, Oil and Natural Gas Corporation (ONGC) Chairman and Managing Director Subir Raha said in Mumbai today.

Raha said oil companies were in a bind as input costs were going up and the government was not allowing them to pass on the costs to retail consumers.

Oil companies were facing a serious financial crunch as they were being forced to fund the increased subsidy on products such as liquefied petroleum gas (LPG) and kerosene, he added.

Indian Oil Corporation, the country's largest state-owned refining and marketing company, had lost Rs 948 crore on selling petrol and diesel in this financial year, the company's Chairman MS Ramachandran said in New Delhi today.

"During the April-September period, the oil industry lost Rs 2,100 crore on petrol and diesel," Ramachandran said.