The Hindu Business Line : `IOC losing Rs 2,500 cr every month'

New Delhi May 29 IOC has said that it has been losing Rs 2,500 crore every month on selling the petroleum products below the cost price in the current fiscal.

"We are currently losing Rs 6.13 a litre on petrol, Rs 3.76 per litre on diesel, Rs 14.67 a litre on kerosene and Rs 167.14 per LPG cylinder," said Mr S. Behuria, Chairman.

"We are losing about Rs 80-85 crore a day on fuel sales. The rupee appreciation and good refining margins have helped soften the under-realisation on fuel sales," he added.

In 2006-07, IOC registered five per cent increase in fuel sales to 53.3 million tonnes, while crude oil processing increased 14 per cent to 44 million tonnes.

For the current fiscal, capital expenditure planned is about Rs 6,000 crore, a 61 per cent rise over the previous year.

Some 40 per cent of the planned expenditure will be financed through borrowings.

IOC expects to complete borrowings of $300 million in a syndicated loan by the end of this month.

The company will also spend Rs 1,600 crore in adding 1,600 petrol stations and modernising existing ones.

IOC earns $8 on processing a barrel of crude compared to $4.19 in 2006-07.

Mr Behuria also said that IOC is partnering Royal Dutch/Shell, Caltex- Chevron and Total to build a jet fuel depot at SSR International Airport in Mauritius.

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