IOC may review capex plan

Public sector Indian Oil Corporation today said it may have to review its capital expenditure plan if fuel prices are not revised quickly.

"IOC is incurring a loss of Rs 148 crore per day due to under-recoveries in prices of petrol, diesel, LPG and kerosene. If prices are not revised, the capital expenditure plan may get affected and we have to review it," IOC Chairman and Managing Director Sarthak Behuria told reporters after the company's first board meeting here.

He said that as per IOC estimates, the under-recovery in petrol is Rs 8.19 per litre, diesel Rs 9.24 per litre, LPG Rs 262.37 per cylinder and kerosene Rs 21.21 per litre.

Out of the Rs 148 crore loss per day, the contribution of IBP that has been merged with IOC is Rs 14 crore.

Asked how long the company would be able to sustain such under-recovery, Behuria said, "we can't sustain it for long".

To a question what the IOC had sought from the government to overcome the problem, he said the matter had already been referred to the Group of Ministers (GoM) and the solution could be a combination of price rise, duty cuts and subsidies.

The GoM, headed by External Affairs Minister Pranab Mukherjee, is likely to meet next month to review fuel prices.