Domestic oil companies are suffering huge losses due to high prices but Govt puts off price hike

The Government will take a decision on whether to raise prices of petroleum products next week though global oil prices have are nearing $100, causing huge losses to public sector oil companies.

"We are trying to see if we can find a solution next week," Petroleum Minister Murli Deora said in Delhi on Wednesday. Deora had on November 2 said he would take a decision this week.
"The government is very much alive to the problems. We are trying our best to resolve this problem as early as possible," he said. "We are considering various alternatives, including duty restructuring and increase in prices".

Deora will meet Prime Minister Manmohan Singh on Wednesday when crude prices hit a lifetime high of $97 a barrel and may touch $100 per barrel.

Domestic oil companies are suffering huge losses due to high prices .The Indian crude basket, the price at which companies buy oil, has increased by 52 percent since February.

Sai Narsimha, Director, Finance at the Indian Oil Corporation, says the company sees its losses going up by Rs 3,000 crore if global crude price continues to rise . "Our under-recoveries are coming out to be Rs 122 cr per day. We have incurred huge losses,” said Narsimha.

Courtesy:ibnlive.com
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