The Hindu Business Line : IOC losing Rs 80 cr a day on sale sops

Chennai, Sept. 10 Indian Oil Corporation is losing Rs 80 crore a day because of having to sell its products at a price lower than the cost, the company’s Chairman and Managing Director, Mr Sarthak Behuria, said today.

At the current prices of crude oil, IOC loses Rs 2.81 for every litre of petrol it sells, Rs 4.68 a litre of diesel, Rs 16 a litre of kerosene and Rs 180 per cylinder of LPG, Mr Behuria told journalists, on the sidelines of the annual general meeting of Chennai Petroleum Corporation Ltd (CPCL), a subsidiary of IOC.

Answering a question, he said that because of upgradation projects at its refineries, IOC’s ability to handle the cheaper high-sulphur crudes will rise from 60 per cent of its throughput (of 60.2 million tonnes a year, including its subsidiaries) to about 75 per cent in three years.

Asked about IOC’s foray into upstream sector, Mr Behuria said that IOC was interested in acquiring a company with oil assets. However, no proposal is under consideration right now.

Meanwhile, CPCL is in touch with the Tamil Nadu government for land for the 15 million tonne refinery-cum-petrochemical complex joint venture with IOC at Ennore. The project would require about 3,000 acres.

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