New Delhi: The surging crude prices likely to compel Indian Oil Corporation (IOC) to sell oil bonds to offset revenue losses incurred due to retailing fuel below the cost price. IOC likely to have to sell bonds worth Rs 2,000 crore this month. IOC is optimising inventory, decreasing working capital and maximising throughput to mitigate the impact of rising crude oil prices. The company was losing about Rs 170 crore per day on sale of petrol, diesel, LPG and kerosene. Crude at $100 will not affect the retail sales because product prices have not increased as fast as crude prices. The company''s borrowings, which stood Rs 27,000 crore on September 30, 2007, have increased to over Rs 29,000 crore as it borrowed money to meet the working capital requirement. The upstream major ONGC hopes the subsidy burden shared by it to be over Rs 20,000 crore in the current fiscal year to March 31, 2008, if the current crude prices remain.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment