IOC loses Rs 8 cr per day due to petrol, diesel price hike

Faridabad, Dec 6 (UNI) IndianOil Corporation (IOC) is losing eight crore rupees per day due to the recent decision by the government to cut petrol and diesel prices.

''We are incurring loss of eight crore rupees on petroleum products sales in a day due to the recent cut in petrol and diesel products. The overall loss is Rs 53-54 crore a day,'' IOC Chairman Sarthak Behuria told reporters here.

The loss incurrred on sale of a litre of diesel is Rs 2.01.

The company's gains on sale of petrol has shrunk to Rs 1.67 per litre. The losses on sale of LPG is Rs 132 a cylinder, Mr Behuria added.

The government slashed petrol prices by Rs two a litre and diesel by Re one a litre, last week in move to contain the headline inflation.

IOC will deploy its new Fluid Catalytic Cracking (FCC) technology -- a secondary process of refining low-value feedstock into high-value LPG, naphtha, gasoline and diesel -- at its upcoming refinery-cum-petrochemicals complex at Paradip, Orissa.

The project, which will cost Rs 1,200 crore, will scale up company's production of liquefied petroleum gas (LPG) from 3.9 per cent to 7 per cent (about 3,000 tonnes per day) for every 15 million tonnes of feedstock.

The Paradip refinery of 3.9 MMTPA capacity, being set up a cost of Rs 2,600 crore, will become operational by 2011.

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