Indian Oil Corp, the nation's largest oil firm, today said it is losing Rs 320 crore (Rs 3.20 billion) a day on fuel sales and may see future projects getting impacted if the current situations continues in 2009.

"We are losing about Rs 320 crore a day on sale of petrol, diesel, domestic LPG and PDS kerosene," IOC Chairman Sarthak Behuria told reporters on the sidelines of 5th Asia Gas Partnership Summit in New Delhi.

IOC currently loses Rs 10.78 a litre on petrol, Rs 17.02 per litre on diesel, Rs 316.06 per LPG cylinder and Rs 25.23 a litre on kerosene as the government has not allowed public-sector fuel retailers to raise domestic prices in line with rise in international cost.

"This year we are okay. . . we can manage somehow. But if the situation continues for another one year, our projects may get impacted," he said.

The company along with Bharat Petroleum and Hindustan Petroleum is seeking higher compensation from the government for selling fuel at a loss. Currently, government compensates 42.7 per cent of their revenue loss through issue of oil bonds. The oil firms and the Petroleum Ministry want this to be raised to close to 60 per cent.

IOC Director (Finance) SV Narasimhan said the company's borrowings have risen to Rs 35,400 crore (Rs 354 billion) as on March 31, 2008 and it had about Rs 17,000 crore (Rs 170 billion) worth of oil bonds in hand.

Last year, IOC sold oil bonds worth Rs 10,000 crore (Rs 100 billion) and it may sell the same amount during the current fiscal also.