Oil Firms Profits Up Rs 6,241 Crore

Contrary to the impression given by oil companies, their profits have gone up substantially after the dismantling of administered pricing mechanism in the petroleum sector from April 1, 2002.

In the first nine months of the current financial year, combined profits of the state-owned oil companies, barring IBP Company Ltd, have gone up by Rs 6,241.93 crore over the corresponding period of the previous year.

However, profits of IBP, a fully-owned subsidiary of Indian Oil Corporation, have come down by Rs 63.06 crore from Rs 112.86 crore in April-December 2001 to Rs 49.80 crore in April-December 2002.

Chennai Petroleum Corporation Ltd, which had incurred losses of Rs 15.78 crore during the first nine months of 2001-02, turned the corner and registered profits of Rs 77.55 crore during the corresponding period of the current fiscal.

Similarly, Bongaigaon Refinery and Petrochemicals Ltd, whose losses during April-December 2001 came to Rs 115.30 crore, registered a profit of Rs 69.05 crore during April-December 2002.

Public sector oil companies have been crying hoarse over under-recoveries on account of low prices for their crude, petrol, diesel, liquefied petroleum gas and kerosene.

However, the financial results show that despite these constraints, the oil companies continue to register higher profits.