State-run Bharat Petroleum Corporation Ltd on Monday said it is losing Rs 3 per litre on sale of diesel and Rs 2 per litre on petrol, and total revenue losses on sale of all fuels is likely to be about Rs 4,000 crore (Rs 40 billion) this fiscal.
"The crude prices have firmed up during the last few days increasing our losses," BPCL chairman and managing director Ashok Sinha told reporters in New Delhi.
Sinha said the company was also losing Rs 171 on LPG cylinder and about Rs 12 per litre on kerosene.
Sinha said the company expected at least one-fourth of the Rs 11,500 crore (Rs 115 billion) bonds that the government will issue to oil retailers for compensating them for losses they suffered on the sale of LPG and kerosene below cost.
"We plan to trade these bonds in the market immediately after their receipt and would use the proceeds to partly pay off the Rs 5,800 crore (Rs 58 billion) debt and in meeting working capital requirements," he said.
Sinha said BPCL would invest Rs 1,500 crore (Rs 15 billion) during 2006-07 for expanding its retail network, LPG bottling capacity and Mumbai-Delhi product pipeline.
Of this, Rs 300-400 crore (Rs 3-4 billion) would be in setting up outlets to augment its existing strength of 6,900 petrol pumps.
On BPCL's proposed six million tonnes per annum Bina refinery in Madhya Pradesh, he said the refinery would cost Rs 10,300 crore (Rs 103 billion) and would be completed by December 2009.
"The refinery will be financed in a debt-equity ratio of 1.6:1 and the company would raise Rs 6,300 crore (Rs 63 billion) debt for the project beginning 2007," he said.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
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