Not keen on frequent fuel price revisions: IOC

With international crude oil prices hovering around $74 per barrel, state-owned Indian Oil Corporation (IOC) today said it is not keen on increasing fuel prices "very frequently".

"I have been always maintaining one stand that we would not like to change the price very frequently as long as the crude oil prices do not fluctuate...," IOC Chairman B M Bansal told reporters here.

His comments came amid speculation that state-owned oil marketing companies may revise petrol prices, which were deregulated by the government in June this year.

"We don't have to change the price (frequently). We have seen in the last two-and-a-half months almost when the motor spirit price was deregulated (on June 25), so far we have not increased or decreased the price...," he said.

"We will have to see that we don't revise the price so frequently and if required, if there is so much fluctuation in the crude oil, then we will do it... But we may not follow any sequence," he said.

Asked whether there would be a fuel hike, he said, "When the prices were deregulated, the crude oil price was around $74 per barrel and even today it is $74 per barrel. It is almost a touch-and-go situation... Even some under- recoveries are there for sometime, we can readjust that later on, rather than adjusting the (fuel) price again and again."

On the outlook for international crude oil prices, he said the cost of crude oil per barrel should range between $70-80 for the next six months.

Asked about the current under-recoveries, he said it was around Rs 3.50 per litre on diesel. "Total under-recovery for the year, we are expecting it to be around Rs 35,000 crore," he said.

Bansal said they would dilute 10 per cent holdings in order to raise funds to support a Rs 50,000 crore capital expenditure plan over the next five years.

"This discussion was going on.. By diluting we can increase our resources and debt will come down... The funds raised would be utilised mainly for our ongoing projects, which are roughly around Rs 50,000 crore worth in the next five years," he said.

The funds would definitely help us in executing the projects, he said.

On IOC's future plans, Bansal said they would be taking equity in Nuclear Power Corporation (NPCIL) for setting up a nuclear power project at Kota, in Rajasthan.

"We will be taking equity in Nuclear Power Corporation. Then we will form a joint venture for putting up a 1,400-MW power project in Kota (Rajasthan)," he said.

Bansal was here to take part in the 44th Annual General Meeting of group company Chennai Petroleum Corporation.