IOC Chief warns of chaos if petrol prices not hiked

New Delhi, May 28 (UNI) Indian Oil Corporation CMD Sarthak Behuria today warned of an impending chaos, where petrol and petroleum products could be rationed, the oil marketing companies (OMCs) would run out of their borrowing limits and all capital expenditure on projects would come to a halt.

He said there are already a long queues in South India for diesel and there was restrictions on sale of LPG cylinders.

Mr Behuria said the chaotic situation can only be aborted if an early decision is taken on the petroleum price hike and the OMCs are bailed out from the huge under-recoveries that they are incurring.

He said IOC, a Fortune 500 Company and the largest refinery in the public sector, will be able to buy crude at the current prices in the global markets till September only.

He said his company can ill afford to buy imported crude and was thus relying on domestic supplies alone.

The Chief said there was huge diversion of LPG adding that this needs to be corrected forthwith.

Mr Behuria said IOC has ''taken a call'' to restrict sales to a reasonable level, indicating some form of rationing of these products.

''Obviously, we are not going to import at a loss,'' he quipped.

IOC, which like other OMCs, has been prevented from raising prices of petrol and petroleum products will soon run out of borrowing limtis to buy oil products for retail if immediate measures were not taken to correct the under-recoveries, Mr Behurai said.

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