New Delhi, Nov 7 (UNI) State-owned Indian Oil Corporation (IOC) today said it will have to borrow Rs 3,000 crore per month if the retail prices of the fuel is not hiked.
''If there is no change in the fuel price, our borrowing will touch Rs 3,000 crore per month,'' company's Chairman and Managing Director Sarthak Behuria told reporters on the sidelines of Energy Summit here.
IOC's current borrowings stand at Rs 28,000 crore and the company is loosing Rs 122 crore per day on the sale of fuel at discounted rates. The company is incurring a loss of Rs 6.4 per litre on petrol, Rs 7.88 per litre on diesel, Rs 17 per litre on kerosene and Rs 212 per litre on LPG cylinder, Mr Behuria said.
''The rising crude prices, currently at 98 dollar per barrel, will severly affect our underrecoveries and will have a negative impact on our cash-position and liquidity,'' he said.
India's crude basket is trading at 88.25 dollars per barrel today and was at 79.3 dollars last month.
On spurt in the international crude prices, Mr Behuria said , ''It is having an in-built speculation and there is no stability in it.'' UNI