IOC for rationalisation of tax on petro products

Lucknow, Jul 20: Ruling out any imminent rise in petro prices following escalation of international crude oil price, Indian Oil Corporation (IOC) Chairman Sarthak Behuria today stressed the need for rationalisation of taxes on petro products to give reprive to people.

Addressing a news conference here, Mr Behuria said only rationalisation of taxes by the Centre and the respective state governments could lower fuel costs as the cost of the crude oil was going up internationally.

''We have represented several times to the Ministry as the people have to pay about 58 per cent of the petrol and diseal prices in the form of Central and state taxes,'' he added.

Claiming IOC has suffered a net operating loss of Rs 1,200 crore in the first four months of the current fiscal due to disparity in the pricing of petrol, diesal, kerosene and LPG, he said the total loss under the head in the current financial year scal might reach around Rs 24,000 crore.

''The government has assured to release bonds to meet our losses,'' he informed.

According to the IOC Chairman, the company was suffering a loss of Rs 5.50 per litre on petrol, Rs 7.70 per litre on diesal, Rs 18 per litre on kerosene and Rs 143 per cylinder on LPG.

Mr Behuria said the government's committment to provide subsidised kerosene and LPG was one of the reasons for oil companies to suffer losses.

Yesterday, the Centre also assured no rise in the prices of petroleum products in view of the West-Asian crisis and rise in the crude oil price in international market.

At present, the price of the crude oil has gone up to 70 dollars per barrel, which decreased from 74 dollars per barrel recorded three days back.

Talking of expansion plan, he said Rs 45,000 crore had been earmarked for new projects including expansion of Haldia, Paradip, Panipat and Mathura oil refineries. He said Rs 1,300 crore yearly expenditure would also be made to improve customer services.

Talking of steps taken to prevent adultration of petrol and diesal, the IOC Chairman said by March next, about 1,800 retail outlets in the country would be monitered and about 18,000 tankers covered with Global Positioning System (GPS). ''The company would also introduce marker system in kerosene to prevent their misuse in petrol pumps,'' he added.

Mr Behuria maintained the company had also set up 70 LPG filling station in metros for automobile and by next fiscal, the number of LPG filling stations would cross 250 mark.

On IOC investment in Uttar Pradesh, he said Rs 200 crore projects had been started with expansion of the Mathura refinery and other smaller projects. At present, there are 1,745 retail outlets, 800 LPG outlets, 24 depots and 20 terminals in UP.

Against the 45 per cent IOC market share in the country, UP alone accounts for 62 per cent.

Earlier, the IOC Chairman inaugurated the first Kisan Seva Kendra at Haidergarh in the adjoining Barabanki district this morning where farmers can purchase their day-to-day essentials along with agricultural equipement and products.

UNI