IOC under-recovery loss in 6 months at Rs 6800 cr

The Indian Oil Corporation's losses from under-recoveries until September was Rs 6,800 crore.

However, the next six-month period is expected to be better, Sarthak Behuria, chairman, IOC, said while addressing shareholders at the annual general meeting on Thursday.

"In six months, including September, our losses stand at Rs 6,800 crore and for the next six months the situation is expected to improve because the price increase will give us a benefit of at least Rs 2,000 crore," he said.

He also pointed out that under-recoveries were, in any case, lower than the previous year, which gives no reason for worry.

He expressed hope that the company's share in the proposed oil bonds of the government would be worth anywhere between Rs 6,000 crore and 7,000 crore.

IOC was facing an under-recovery of Rs 8 per litre on petrol, Rs 4.8 per litre on diesel, Rs 12 on kerosene and Rs 9.6 per litre on LPG. Behuria attributed 60per cent to 70 per cent of the losses on recoveries due to LPG and kerosene.

Besides, the government had allowed oil marketing companies to raise retail fuel prices by about 7 per cent in June, and a similar increase was approved earlier this month.

Speaking on investments, Behuria said IOC is looking to double its investment in Mauritius to $35 million to augment its tankage capacity and set up a product testing laboratory.

Indian Oil (Mauritius) enjoys 7 per cent share in the Mauritius market and operates a modern terminal, offers aviation fuelling services and petrol and diesel stations there.