India's largest fuel retailer, IOC made it clear that Petrol prices may be hiked in the future if the government won't pay their losses on the deregulated product. Meanwhile, the Finance Ministry is planning to give subsidy of Rs 20 crore on the deregulating products to countries top oil retailer.
According to sources, state-run refiners like IOC, Bharat Petroleum and Hindustan Petroleum are already in losses as the petroleum products are selling below market rate.
Mr R.S. Butola, Chairman, Indian Oil on Wednesday (Nov 9) said that Indian Oil Corporation has suffered a big dent in the second quarter of the current fiscal. He also said that oil companies have not been able to recover the losses which are occurred from the subsidy in the sale of kerosine, diesel and LPG. Butola also urged the government to take strong steps to prevent oil companies from facing loss by selling off their petroleum products below market rate.