No cut in fuel prices

The Union petroleum minister, Mr Murli Deora has said that the government will consider a cut in fuel prices if international prices fell to $67 per barrel.

Mr Deora said (current) domestic retail prices were pegged at $67 per barrel and a retail price cut would be considered if prices fall below this level.

“We welcome reduction in oil prices but still public sector companies are losing money. Oil companies have to square off their losses for us to consider a price cut,” said the minister.

Mr Deora said that the Indian oil basket has averaged $118.56 per barrel during the fiscal, which is higher than the level at which domestic retail prices are pegged. He said that gains from oil’s decline have been offset by the Rupee’s fall.

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Indian Oil Corporation profit down 71%, stops Liquefied Petroleum Gas connections

Indian Oil Corp (IOC) on Wednesday reported a 71 per cent dip in its net profit in the first quarter as good refinery margins was not good enough to make up for the revenue loss on fuel sales.

Net profit in April-June quarter plummeted to Rs 415 crore from Rs 1,468 crore in the year-ago period, IOC chairman, Mr Sarthak Behuria, told reporters.

The company earned $16.81 for processing every barrel of crude oil, up from $10.70 per barrel last year, but it was not good enough to make up for the Rs 413 crore loss it incurred per day on sale of petrol, diesel, domestic LPG and kerosene.

Sales, however, rose to Rs 74,496 crore from Rs 52,862 crore in Q1 of 2007-08 fiscal.

The state-run oil major also reported an additional income of Rs 14,276 crore, which included Rs 13,527 crore oil bonds, which the government issued to the company to partly compensate for the losses on fuel sales.

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