Business Standard

PSU oil companies may lose Rs 25,000 cr on under-recovery

T E Narasimhan  |  Chennai 

The public sector oil companies — Indian Oil Corporation, and — may suffer a Rs 25,000 crore revenue loss on fuel sales this fiscal, said S Behuria, chairman and managing director, IOC.

“At current crude prices, the oil marketing companies’ loss is Rs 75 crore a day. By the end of the current fiscal, under-recovery (revenue loss) could be around Rs 25,000 crore,” he said at the sidelines of the Chennai Petroleum Corporation Ltd’s (CPCL’s) annual general meeting on Monday.

IOC, BPCL and HPCL incurred a revenue loss of Rs 1.03 lakh crore on sale of petroleum fuel in 2008-09.

The global rise in crude oil prices will increase the under-recoveries for PSUs on sale of fuel at controlled prices. The high volatility in the rupee will add to it. According to CPCL’s annual report, crude oil import by India rose to 128.15 million tonnes in 2009-09, an increase of six per cent over the previous year.

CPCL’s annual report for 2008-09 says the year saw extreme swings in crude oil prices, with an unprecedented rise in the oil price till July 2008, followed by a rapid fall between August and December 2008. The PSU companies in the country faced the major brunt of this swing, due to the product pricing structure in the country.

The price of Brent crude reached $144 a barrel in July 2008 and dropped to $36.5 a barrel in December. Similarly, the Indian crude basket dropped from $147 a barrel to $35.8 a barrel.

The report also said overall growth in sales of petroleum products in India in 2008-09 was 4.5 per cent higher than the previous year.

RECOMMENDED FOR YOU

PSU oil companies may lose Rs 25,000 cr on under-recovery

The public sector oil companies — Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum — may suffer a Rs 25,000 crore revenue loss on fuel sales this fiscal, said S Behuria, chairman and managing director, IOC.

The public sector oil companies — Indian Oil Corporation, and — may suffer a Rs 25,000 crore revenue loss on fuel sales this fiscal, said S Behuria, chairman and managing director, IOC.

“At current crude prices, the oil marketing companies’ loss is Rs 75 crore a day. By the end of the current fiscal, under-recovery (revenue loss) could be around Rs 25,000 crore,” he said at the sidelines of the Chennai Petroleum Corporation Ltd’s (CPCL’s) annual general meeting on Monday.

IOC, BPCL and HPCL incurred a revenue loss of Rs 1.03 lakh crore on sale of petroleum fuel in 2008-09.

The global rise in crude oil prices will increase the under-recoveries for PSUs on sale of fuel at controlled prices. The high volatility in the rupee will add to it. According to CPCL’s annual report, crude oil import by India rose to 128.15 million tonnes in 2009-09, an increase of six per cent over the previous year.

CPCL’s annual report for 2008-09 says the year saw extreme swings in crude oil prices, with an unprecedented rise in the oil price till July 2008, followed by a rapid fall between August and December 2008. The PSU companies in the country faced the major brunt of this swing, due to the product pricing structure in the country.

The price of Brent crude reached $144 a barrel in July 2008 and dropped to $36.5 a barrel in December. Similarly, the Indian crude basket dropped from $147 a barrel to $35.8 a barrel.

The report also said overall growth in sales of petroleum products in India in 2008-09 was 4.5 per cent higher than the previous year.

image
Business Standard
177 22

PSU oil companies may lose Rs 25,000 cr on under-recovery

The public sector oil companies — Indian Oil Corporation, and — may suffer a Rs 25,000 crore revenue loss on fuel sales this fiscal, said S Behuria, chairman and managing director, IOC.

“At current crude prices, the oil marketing companies’ loss is Rs 75 crore a day. By the end of the current fiscal, under-recovery (revenue loss) could be around Rs 25,000 crore,” he said at the sidelines of the Chennai Petroleum Corporation Ltd’s (CPCL’s) annual general meeting on Monday.

IOC, BPCL and HPCL incurred a revenue loss of Rs 1.03 lakh crore on sale of petroleum fuel in 2008-09.

The global rise in crude oil prices will increase the under-recoveries for PSUs on sale of fuel at controlled prices. The high volatility in the rupee will add to it. According to CPCL’s annual report, crude oil import by India rose to 128.15 million tonnes in 2009-09, an increase of six per cent over the previous year.

CPCL’s annual report for 2008-09 says the year saw extreme swings in crude oil prices, with an unprecedented rise in the oil price till July 2008, followed by a rapid fall between August and December 2008. The PSU companies in the country faced the major brunt of this swing, due to the product pricing structure in the country.

The price of Brent crude reached $144 a barrel in July 2008 and dropped to $36.5 a barrel in December. Similarly, the Indian crude basket dropped from $147 a barrel to $35.8 a barrel.

The report also said overall growth in sales of petroleum products in India in 2008-09 was 4.5 per cent higher than the previous year.

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard