Currently Making A Profit Of Petrol But Diesel - Nov 12, 2008

Bharat Petroleum Corporation (BPCL) (up 2.39%), Indian Oil Corporation (IOC) (up 2.56%), and Hindustan Petroleum Corporation (HPCL) (up 2.97%), rose after the US crude oil dipped 8 cents a barrel to $59.25 today, 12 November 2008 after falling as far as $58.32 the previous day, the lowest level since March 2007.Lower oil prices will reduce underrecoveries at the state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.

The PSU OMCs, this week, received Rs 22,000 crore in bonds from the government yesterday to offset losses. The bonds will partially compensate the refiners for revenue losses for the year ending March 2009. IOC received bonds worth Rs 11975 crore, BPCL and HPCL received Rs 4693 crore and Rs 5330 crore respectively.

Prime Minister Manmohan Singh, meanwhile, ruled out cutting retail prices of petrol and diesel yesterday. Contending that there were limits to which government can go on subsidising oil firms, Dr Singh said the government will wait till oil companies stop making losses before considering cutting petrol and diesel prices.

He further added that IOC, BPCL and HPCL are currently making a profit of Rs 4.12 a litre on petrol but losing Rs 0.96 per litre on diesel.