'Petrol firms discussing price rise', says IOC Chairman Butola
New Delhi, Sep 7 (ANI): The chairman of the Indian Oil Corporation Ltd., R.S. Butola, on Friday said the IOC is currently losing slightly less than six rupees per litre on petrol sales, and added that companies were discussing an increase in prices.
"We were earlier losing rupees 1.37, it went to rupees 3.87, it also went to six rupees. Currently, it has slightly come down, but it is difficult for us, we will have to average it out," said Butola.
"We had lost 950 crore rupees in the first quarter up to June and thereafter, in the last one month, we have lost 16 crore. We might lose another 300 crore," he added.
Petroleum and Natural Gas Minister Jaipal Reddy earlier in the day denied speculation that oil marketing companies were going to hike fuel prices.
Reddy said that there was a need to lower the under-recoveries faced by the oil companies by selling fuel at subsidized rates.
"We are facing a tremendous crisis of unprecedented magnitude. However, there is no immediate proposal to hike fuel prices, including petrol. The Cabinet will take the final call," he said.
According to reports, an increase in petrol, diesel, domestic cooking gas (LPG) and kerosene prices looks imminent after the Finance Ministry said it has no money to provide for fuel subsidy.
In all possibility, prices may be increased after the current Monsoon Session of Parliament, which ends on Friday.
Diesel, domestic LPG and PDS kerosene rates have not been changed since June 2011 even though cost of production has soared 28 percent.
State-owned fuel retailers are losing Rs 560 crore per day on sale of diesel and cooking fuel, and are forced to resort to short-term borrowings to meet funds needed for importing crude oil (raw material). (ANI)
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