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December 06, 2006 18:49 IST
Indian Oil Corporation [Get Quote], the country's largest oil firm, on Wednesday said it is losing about Rs 54 crore (Rs 540 million) every day on sale of petroleum products.
"We are losing Rs 53-54 crore (Rs 530-540 million) every day on the sale of four petroleum products," IOC Chairman Sarthak Behuria said. This includes Rs 2.1 per litre on diesel, Rs 132 per LPG cylinder and Rs 13.81 a litre on kerosene at the import parity price, he said, but added that the company was making marginal profit of Rs 1.67 a litre on petrol.
After the recent cut in petrol and diesel prices, the losses have increased by around Rs 8 crore (Rs 80 million) a day, he said.
Asked about the impact of fall in international crude oil prices, Behuria said IOC would have to wait till the end of month to calculate the impact of oil prices, besides government bonds, cost on inventories and sharing of trade discounts from upstream companies. Referring to company's plans to sell non-fuel products at its retail outlets, he said: "We have appointed consultants to recommend entry into such operations. It includes selling of non-fuel products at company outlets and fuel and lubricants with other brands." The company is also planning to set up a 50:50 joint venture with Reliance Industries [Get Quote] for setting up a distribution network of piped natural gas in Andhra Pradesh and Tamil Nadu. Piped natural gas would cost around 30 per cent cheaper to the consumers in comparison to LPG and supplied from RIL's Krishna Godavari basin gas reserves.
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