IOC to suffer Rs 8,570 cr loss on high crude prices

New Delhi, Oct 30 (UNI) State-owned oil marketing company Indian Oil Corporation (IOC) today said it will suffer a net loss of Rs 8,570 crore during the current fiscal if the global crude oil prices continues to surge ahead.

Reeling under heavy losses amounting to Rs 3,500 crore in April-September period, company Chairman Sarthak Behuria said the current underrecoveries per day on the sale of fuels is Rs 96 crore.

''If the government does not revise the retail selling prices of fuel in line with international prices, our underrecoveries will touch Rs 121 crore per day from November this year,'' Mr Behuria told reporters.

The company is currently losing Rs 3.90 per litre on petrol, Rs 6.22 per litre on diesel, on Kerosone Rs 15.99 and Rs 174.17 on per cylinder of LPG.

Mr Behuria cautioned that if the situation does not improve the underrecoveries from November on petrol and diesel will go up to Rs 4.94 per litre and Rs 6.50 per litre respectively, while for Kerosene it will be Rs 16.42 and for LPG Rs 207.

The company's gross refining margins in the second quarter is at 5.91 dollar per barrel in comparison to a negative figure in the corresponding period last year on account of crude oil prices crashing last year.

Its borrowings increased to Rs 27,963 crore in first six months of the fiscal as compared to Rs 27,083 crore.

''Our borrowings are very high as we have to sell our products below costs,'' Mr Behuria added.

UNI