Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 73
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::printArticle() - APP/Controller/ArtileDetailController.php, line 73
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 74
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::printArticle() - APP/Controller/ArtileDetailController.php, line 74
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

                trigger_error($message, E_USER_WARNING);

            } else {
$response = object(Cake\Http\Response) {

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    <link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f170ac7e12f-trace').style.display = (document.getElementById('cakeErr67f170ac7e12f-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr67f170ac7e12f-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f170ac7e12f-code').style.display = (document.getElementById('cakeErr67f170ac7e12f-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f170ac7e12f-context').style.display = (document.getElementById('cakeErr67f170ac7e12f-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr67f170ac7e12f-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700">&lt;</span><span style="color: #0000BB">head</span><span style="color: #007700">&gt;
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Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the nation&amp;rsquo;s largest fuel retailer.
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Such an increase will impact the financials of government-owned OMCs such as IOC, Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL), which currently register losses from this of Rs.439, Rs.12.04 and Rs.28.54 on a cooking gas cylinder, one litre of diesel and the same volume of kerosene, respectively.
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According to the petroleum ministry, OMCs currently register a daily under-recovery of around Rs.465 crore.
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&lt;br /&gt;
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The average price of crude oil in the Indian energy basket on 13 March was $124.84 per barrel.
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&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
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While India partially deregulated fuel prices in June 2010, allowing government-owned OMCs to fix the price of petrol instead of selling it at government-determined rates, prices are only raised after government approval. Petrol price increases have been put on hold due to the state assembly elections in Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa.
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&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
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&lt;div style=&quot;text-align: justify&quot;&gt;
The total losses on this account to be borne by refiners this fiscal is expected at Rs.1.32 trillion compared with Rs.78,190 crore last year, according to the petroleum ministry. In the nine months ended December, it stood at Rs.97,313 crore.
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&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
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Credit rating firm Crisil Ltd said in a report last month that it expects the Congress-led United Progressive Alliance government to raise the prices of regulated fuels such as diesel, cooking gas and kerosene in the wake of rising crude oil prices due to &amp;ldquo;ongoing geopolitical tensions&amp;rdquo; over Iran. India depends on imports to meet 80% of its oil needs.
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&lt;br /&gt;
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&lt;div style=&quot;text-align: justify&quot;&gt;
&amp;ldquo;Average crude oil prices will remain firm in the range of $110-120 per barrel during 2012, higher than the earlier estimates of $100 per barrel, despite a weak global economy,&amp;rdquo; Crisil said in its report.
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&lt;br /&gt;
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While the government promised to offset Rs.30,000 crore of the Rs.64,900 crore registered as losses from selling fuel below cost by the oil refiners in the first half of 2011-12, there were delays in disbursement. In addition, a contribution of Rs.21,633 crore was also been made by oil and gas explorers, including Oil and Natural Gas Corp. Ltd, Oil India Ltd and GAIL (India) Ltd, as discounts. The residual Rs.13,267 crore had to be absorbed by the refiners.
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&lt;br /&gt;
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With crude oil prices averaging $113 per barrel in the first nine months of the first year, compared with the expectation of $110 per barrel, the losses on this front amounted to Rs.973 billion, said a 7 March report from the IDBI Capital Market Services Ltd equity research desk.
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&lt;br /&gt;
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&amp;ldquo;Further, upstream subsidy burden stood at 37.9% in 9MFY12, which we expect to increase to 42% in FY12E,&amp;rdquo;&amp;emsp;it said. &amp;ldquo;Also, government contribution till date announced is at Rs.300 bn (billion), which is just 31% of the total UR (under-recovery). Consequently, oil marketing companies are facing severe liquidity concern and their debt levels are at all-time high levels. If crude oil price remains at current levels then total under-recoveries may go up to Rs.1.4tr in FY12E.&amp;rdquo;
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&lt;br /&gt;
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IOC, HPCL and BPCL would have posted a combined net profit of Rs.5,246 crore for the year ended 31 March 2011, had they not absorbed a notional cumulative loss of Rs.6,894 crore on selling fuel below cost.
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Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the nation&amp;rsquo;s largest fuel retailer.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Such an increase will impact the financials of government-owned OMCs such as IOC, Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL), which currently register losses from this of Rs.439, Rs.12.04 and Rs.28.54 on a cooking gas cylinder, one litre of diesel and the same volume of kerosene, respectively.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;According to the petroleum ministry, OMCs currently register a daily under-recovery of around Rs.465 crore.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The average price of crude oil in the Indian energy basket on 13 March was $124.84 per barrel.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;While India partially deregulated fuel prices in June 2010, allowing government-owned OMCs to fix the price of petrol instead of selling it at government-determined rates, prices are only raised after government approval. Petrol price increases have been put on hold due to the state assembly elections in Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The total losses on this account to be borne by refiners this fiscal is expected at Rs.1.32 trillion compared with Rs.78,190 crore last year, according to the petroleum ministry. In the nine months ended December, it stood at Rs.97,313 crore.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Credit rating firm Crisil Ltd said in a report last month that it expects the Congress-led United Progressive Alliance government to raise the prices of regulated fuels such as diesel, cooking gas and kerosene in the wake of rising crude oil prices due to &amp;ldquo;ongoing geopolitical tensions&amp;rdquo; over Iran. India depends on imports to meet 80% of its oil needs.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&amp;ldquo;Average crude oil prices will remain firm in the range of $110-120 per barrel during 2012, higher than the earlier estimates of $100 per barrel, despite a weak global economy,&amp;rdquo; Crisil said in its report.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;While the government promised to offset Rs.30,000 crore of the Rs.64,900 crore registered as losses from selling fuel below cost by the oil refiners in the first half of 2011-12, there were delays in disbursement. In addition, a contribution of Rs.21,633 crore was also been made by oil and gas explorers, including Oil and Natural Gas Corp. Ltd, Oil India Ltd and GAIL (India) Ltd, as discounts. The residual Rs.13,267 crore had to be absorbed by the refiners.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;With crude oil prices averaging $113 per barrel in the first nine months of the first year, compared with the expectation of $110 per barrel, the losses on this front amounted to Rs.973 billion, said a 7 March report from the IDBI Capital Market Services Ltd equity research desk.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&amp;ldquo;Further, upstream subsidy burden stood at 37.9% in 9MFY12, which we expect to increase to 42% in FY12E,&amp;rdquo;&amp;emsp;it said. &amp;ldquo;Also, government contribution till date announced is at Rs.300 bn (billion), which is just 31% of the total UR (under-recovery). Consequently, oil marketing companies are facing severe liquidity concern and their debt levels are at all-time high levels. If crude oil price remains at current levels then total under-recoveries may go up to Rs.1.4tr in FY12E.&amp;rdquo;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;IOC, HPCL and BPCL would have posted a combined net profit of Rs.5,246 crore for theyear ended 31 March 2011, had they not absorbed a notionalcumulativelossof Rs.6,894 crore on selling fuel below cost.&lt;/div&gt;&#039;,
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Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the nation&amp;rsquo;s largest fuel retailer.
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&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
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Such an increase will impact the financials of government-owned OMCs such as IOC, Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL), which currently register losses from this of Rs.439, Rs.12.04 and Rs.28.54 on a cooking gas cylinder, one litre of diesel and the same volume of kerosene, respectively.
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
According to the petroleum ministry, OMCs currently register a daily under-recovery of around Rs.465 crore.
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
The average price of crude oil in the Indian energy basket on 13 March was $124.84 per barrel.
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
While India partially deregulated fuel prices in June 2010, allowing government-owned OMCs to fix the price of petrol instead of selling it at government-determined rates, prices are only raised after government approval. Petrol price increases have been put on hold due to the state assembly elections in Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa.
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
The total losses on this account to be borne by refiners this fiscal is expected at Rs.1.32 trillion compared with Rs.78,190 crore last year, according to the petroleum ministry. In the nine months ended December, it stood at Rs.97,313 crore.
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
Credit rating firm Crisil Ltd said in a report last month that it expects the Congress-led United Progressive Alliance government to raise the prices of regulated fuels such as diesel, cooking gas and kerosene in the wake of rising crude oil prices due to &amp;ldquo;ongoing geopolitical tensions&amp;rdquo; over Iran. India depends on imports to meet 80% of its oil needs.
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&amp;ldquo;Average crude oil prices will remain firm in the range of $110-120 per barrel during 2012, higher than the earlier estimates of $100 per barrel, despite a weak global economy,&amp;rdquo; Crisil said in its report.
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
While the government promised to offset Rs.30,000 crore of the Rs.64,900 crore registered as losses from selling fuel below cost by the oil refiners in the first half of 2011-12, there were delays in disbursement. In addition, a contribution of Rs.21,633 crore was also been made by oil and gas explorers, including Oil and Natural Gas Corp. Ltd, Oil India Ltd and GAIL (India) Ltd, as discounts. The residual Rs.13,267 crore had to be absorbed by the refiners.
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
With crude oil prices averaging $113 per barrel in the first nine months of the first year, compared with the expectation of $110 per barrel, the losses on this front amounted to Rs.973 billion, said a 7 March report from the IDBI Capital Market Services Ltd equity research desk.
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&amp;ldquo;Further, upstream subsidy burden stood at 37.9% in 9MFY12, which we expect to increase to 42% in FY12E,&amp;rdquo;&amp;emsp;it said. &amp;ldquo;Also, government contribution till date announced is at Rs.300 bn (billion), which is just 31% of the total UR (under-recovery). Consequently, oil marketing companies are facing severe liquidity concern and their debt levels are at all-time high levels. If crude oil price remains at current levels then total under-recoveries may go up to Rs.1.4tr in FY12E.&amp;rdquo;
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&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
IOC, HPCL and BPCL would have posted a combined net profit of Rs.5,246 crore for the year ended 31 March 2011, had they not absorbed a notional cumulative loss of Rs.6,894 crore on selling fuel below cost.
&lt;/div&gt;&#039;,
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Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the...&#039;
$disp = &#039;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the nation&amp;rsquo;s largest fuel retailer.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Such an increase will impact the financials of government-owned OMCs such as IOC, Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL), which currently register losses from this of Rs.439, Rs.12.04 and Rs.28.54 on a cooking gas cylinder, one litre of diesel and the same volume of kerosene, respectively.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;According to the petroleum ministry, OMCs currently register a daily under-recovery of around Rs.465 crore.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The average price of crude oil in the Indian energy basket on 13 March was $124.84 per barrel.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;While India partially deregulated fuel prices in June 2010, allowing government-owned OMCs to fix the price of petrol instead of selling it at government-determined rates, prices are only raised after government approval. Petrol price increases have been put on hold due to the state assembly elections in Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The total losses on this account to be borne by refiners this fiscal is expected at Rs.1.32 trillion compared with Rs.78,190 crore last year, according to the petroleum ministry. In the nine months ended December, it stood at Rs.97,313 crore.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Credit rating firm Crisil Ltd said in a report last month that it expects the Congress-led United Progressive Alliance government to raise the prices of regulated fuels such as diesel, cooking gas and kerosene in the wake of rising crude oil prices due to &amp;ldquo;ongoing geopolitical tensions&amp;rdquo; over Iran. India depends on imports to meet 80% of its oil needs.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&amp;ldquo;Average crude oil prices will remain firm in the range of $110-120 per barrel during 2012, higher than the earlier estimates of $100 per barrel, despite a weak global economy,&amp;rdquo; Crisil said in its report.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;While the government promised to offset Rs.30,000 crore of the Rs.64,900 crore registered as losses from selling fuel below cost by the oil refiners in the first half of 2011-12, there were delays in disbursement. In addition, a contribution of Rs.21,633 crore was also been made by oil and gas explorers, including Oil and Natural Gas Corp. Ltd, Oil India Ltd and GAIL (India) Ltd, as discounts. The residual Rs.13,267 crore had to be absorbed by the refiners.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;With crude oil prices averaging $113 per barrel in the first nine months of the first year, compared with the expectation of $110 per barrel, the losses on this front amounted to Rs.973 billion, said a 7 March report from the IDBI Capital Market Services Ltd equity research desk.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&amp;ldquo;Further, upstream subsidy burden stood at 37.9% in 9MFY12, which we expect to increase to 42% in FY12E,&amp;rdquo;&amp;emsp;it said. &amp;ldquo;Also, government contribution till date announced is at Rs.300 bn (billion), which is just 31% of the total UR (under-recovery). Consequently, oil marketing companies are facing severe liquidity concern and their debt levels are at all-time high levels. If crude oil price remains at current levels then total under-recoveries may go up to Rs.1.4tr in FY12E.&amp;rdquo;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;IOC, HPCL and BPCL would have posted a combined net profit of Rs.5,246 crore for theyear ended 31 March 2011, had they not absorbed a notionalcumulativelossof Rs.6,894 crore on selling fuel below cost.&lt;/div&gt;&#039;
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Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the..."/>
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                <strong>Oil firms’ losses on fuel sales may spike next fiscal-Utpal Bhaskar</strong></h1>
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                <div style="text-align: justify"><br /></div><div style="text-align: justify">Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the nation&rsquo;s largest fuel retailer.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Such an increase will impact the financials of government-owned OMCs such as IOC, Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL), which currently register losses from this of Rs.439, Rs.12.04 and Rs.28.54 on a cooking gas cylinder, one litre of diesel and the same volume of kerosene, respectively.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">According to the petroleum ministry, OMCs currently register a daily under-recovery of around Rs.465 crore.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The average price of crude oil in the Indian energy basket on 13 March was $124.84 per barrel.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">While India partially deregulated fuel prices in June 2010, allowing government-owned OMCs to fix the price of petrol instead of selling it at government-determined rates, prices are only raised after government approval. Petrol price increases have been put on hold due to the state assembly elections in Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The total losses on this account to be borne by refiners this fiscal is expected at Rs.1.32 trillion compared with Rs.78,190 crore last year, according to the petroleum ministry. In the nine months ended December, it stood at Rs.97,313 crore.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Credit rating firm Crisil Ltd said in a report last month that it expects the Congress-led United Progressive Alliance government to raise the prices of regulated fuels such as diesel, cooking gas and kerosene in the wake of rising crude oil prices due to &ldquo;ongoing geopolitical tensions&rdquo; over Iran. India depends on imports to meet 80% of its oil needs.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;Average crude oil prices will remain firm in the range of $110-120 per barrel during 2012, higher than the earlier estimates of $100 per barrel, despite a weak global economy,&rdquo; Crisil said in its report.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">While the government promised to offset Rs.30,000 crore of the Rs.64,900 crore registered as losses from selling fuel below cost by the oil refiners in the first half of 2011-12, there were delays in disbursement. In addition, a contribution of Rs.21,633 crore was also been made by oil and gas explorers, including Oil and Natural Gas Corp. Ltd, Oil India Ltd and GAIL (India) Ltd, as discounts. The residual Rs.13,267 crore had to be absorbed by the refiners.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">With crude oil prices averaging $113 per barrel in the first nine months of the first year, compared with the expectation of $110 per barrel, the losses on this front amounted to Rs.973 billion, said a 7 March report from the IDBI Capital Market Services Ltd equity research desk.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;Further, upstream subsidy burden stood at 37.9% in 9MFY12, which we expect to increase to 42% in FY12E,&rdquo;&emsp;it said. &ldquo;Also, government contribution till date announced is at Rs.300 bn (billion), which is just 31% of the total UR (under-recovery). Consequently, oil marketing companies are facing severe liquidity concern and their debt levels are at all-time high levels. If crude oil price remains at current levels then total under-recoveries may go up to Rs.1.4tr in FY12E.&rdquo;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">IOC, HPCL and BPCL would have posted a combined net profit of Rs.5,246 crore for theyear ended 31 March 2011, had they not absorbed a notionalcumulativelossof Rs.6,894 crore on selling fuel below cost.</div>               </font>
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    <link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f170ac7e12f-trace').style.display = (document.getElementById('cakeErr67f170ac7e12f-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr67f170ac7e12f-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f170ac7e12f-code').style.display = (document.getElementById('cakeErr67f170ac7e12f-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f170ac7e12f-context').style.display = (document.getElementById('cakeErr67f170ac7e12f-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr67f170ac7e12f-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700">&lt;</span><span style="color: #0000BB">head</span><span style="color: #007700">&gt;
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Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the nation&amp;rsquo;s largest fuel retailer.
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Such an increase will impact the financials of government-owned OMCs such as IOC, Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL), which currently register losses from this of Rs.439, Rs.12.04 and Rs.28.54 on a cooking gas cylinder, one litre of diesel and the same volume of kerosene, respectively.
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According to the petroleum ministry, OMCs currently register a daily under-recovery of around Rs.465 crore.
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The average price of crude oil in the Indian energy basket on 13 March was $124.84 per barrel.
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While India partially deregulated fuel prices in June 2010, allowing government-owned OMCs to fix the price of petrol instead of selling it at government-determined rates, prices are only raised after government approval. Petrol price increases have been put on hold due to the state assembly elections in Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa.
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The total losses on this account to be borne by refiners this fiscal is expected at Rs.1.32 trillion compared with Rs.78,190 crore last year, according to the petroleum ministry. In the nine months ended December, it stood at Rs.97,313 crore.
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Credit rating firm Crisil Ltd said in a report last month that it expects the Congress-led United Progressive Alliance government to raise the prices of regulated fuels such as diesel, cooking gas and kerosene in the wake of rising crude oil prices due to &amp;ldquo;ongoing geopolitical tensions&amp;rdquo; over Iran. India depends on imports to meet 80% of its oil needs.
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&amp;ldquo;Average crude oil prices will remain firm in the range of $110-120 per barrel during 2012, higher than the earlier estimates of $100 per barrel, despite a weak global economy,&amp;rdquo; Crisil said in its report.
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While the government promised to offset Rs.30,000 crore of the Rs.64,900 crore registered as losses from selling fuel below cost by the oil refiners in the first half of 2011-12, there were delays in disbursement. In addition, a contribution of Rs.21,633 crore was also been made by oil and gas explorers, including Oil and Natural Gas Corp. Ltd, Oil India Ltd and GAIL (India) Ltd, as discounts. The residual Rs.13,267 crore had to be absorbed by the refiners.
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With crude oil prices averaging $113 per barrel in the first nine months of the first year, compared with the expectation of $110 per barrel, the losses on this front amounted to Rs.973 billion, said a 7 March report from the IDBI Capital Market Services Ltd equity research desk.
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&amp;ldquo;Further, upstream subsidy burden stood at 37.9% in 9MFY12, which we expect to increase to 42% in FY12E,&amp;rdquo;&amp;emsp;it said. &amp;ldquo;Also, government contribution till date announced is at Rs.300 bn (billion), which is just 31% of the total UR (under-recovery). Consequently, oil marketing companies are facing severe liquidity concern and their debt levels are at all-time high levels. If crude oil price remains at current levels then total under-recoveries may go up to Rs.1.4tr in FY12E.&amp;rdquo;
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IOC, HPCL and BPCL would have posted a combined net profit of Rs.5,246 crore for the year ended 31 March 2011, had they not absorbed a notional cumulative loss of Rs.6,894 crore on selling fuel below cost.
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Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the nation&amp;rsquo;s largest fuel retailer.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Such an increase will impact the financials of government-owned OMCs such as IOC, Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL), which currently register losses from this of Rs.439, Rs.12.04 and Rs.28.54 on a cooking gas cylinder, one litre of diesel and the same volume of kerosene, respectively.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;According to the petroleum ministry, OMCs currently register a daily under-recovery of around Rs.465 crore.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The average price of crude oil in the Indian energy basket on 13 March was $124.84 per barrel.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;While India partially deregulated fuel prices in June 2010, allowing government-owned OMCs to fix the price of petrol instead of selling it at government-determined rates, prices are only raised after government approval. Petrol price increases have been put on hold due to the state assembly elections in Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The total losses on this account to be borne by refiners this fiscal is expected at Rs.1.32 trillion compared with Rs.78,190 crore last year, according to the petroleum ministry. In the nine months ended December, it stood at Rs.97,313 crore.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Credit rating firm Crisil Ltd said in a report last month that it expects the Congress-led United Progressive Alliance government to raise the prices of regulated fuels such as diesel, cooking gas and kerosene in the wake of rising crude oil prices due to &amp;ldquo;ongoing geopolitical tensions&amp;rdquo; over Iran. India depends on imports to meet 80% of its oil needs.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&amp;ldquo;Average crude oil prices will remain firm in the range of $110-120 per barrel during 2012, higher than the earlier estimates of $100 per barrel, despite a weak global economy,&amp;rdquo; Crisil said in its report.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;While the government promised to offset Rs.30,000 crore of the Rs.64,900 crore registered as losses from selling fuel below cost by the oil refiners in the first half of 2011-12, there were delays in disbursement. In addition, a contribution of Rs.21,633 crore was also been made by oil and gas explorers, including Oil and Natural Gas Corp. Ltd, Oil India Ltd and GAIL (India) Ltd, as discounts. The residual Rs.13,267 crore had to be absorbed by the refiners.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;With crude oil prices averaging $113 per barrel in the first nine months of the first year, compared with the expectation of $110 per barrel, the losses on this front amounted to Rs.973 billion, said a 7 March report from the IDBI Capital Market Services Ltd equity research desk.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&amp;ldquo;Further, upstream subsidy burden stood at 37.9% in 9MFY12, which we expect to increase to 42% in FY12E,&amp;rdquo;&amp;emsp;it said. &amp;ldquo;Also, government contribution till date announced is at Rs.300 bn (billion), which is just 31% of the total UR (under-recovery). Consequently, oil marketing companies are facing severe liquidity concern and their debt levels are at all-time high levels. If crude oil price remains at current levels then total under-recoveries may go up to Rs.1.4tr in FY12E.&amp;rdquo;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;IOC, HPCL and BPCL would have posted a combined net profit of Rs.5,246 crore for theyear ended 31 March 2011, had they not absorbed a notionalcumulativelossof Rs.6,894 crore on selling fuel below cost.&lt;/div&gt;&#039;,
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Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the nation&amp;rsquo;s largest fuel retailer.
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
Such an increase will impact the financials of government-owned OMCs such as IOC, Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL), which currently register losses from this of Rs.439, Rs.12.04 and Rs.28.54 on a cooking gas cylinder, one litre of diesel and the same volume of kerosene, respectively.
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
According to the petroleum ministry, OMCs currently register a daily under-recovery of around Rs.465 crore.
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
The average price of crude oil in the Indian energy basket on 13 March was $124.84 per barrel.
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
While India partially deregulated fuel prices in June 2010, allowing government-owned OMCs to fix the price of petrol instead of selling it at government-determined rates, prices are only raised after government approval. Petrol price increases have been put on hold due to the state assembly elections in Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa.
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
The total losses on this account to be borne by refiners this fiscal is expected at Rs.1.32 trillion compared with Rs.78,190 crore last year, according to the petroleum ministry. In the nine months ended December, it stood at Rs.97,313 crore.
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
Credit rating firm Crisil Ltd said in a report last month that it expects the Congress-led United Progressive Alliance government to raise the prices of regulated fuels such as diesel, cooking gas and kerosene in the wake of rising crude oil prices due to &amp;ldquo;ongoing geopolitical tensions&amp;rdquo; over Iran. India depends on imports to meet 80% of its oil needs.
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&amp;ldquo;Average crude oil prices will remain firm in the range of $110-120 per barrel during 2012, higher than the earlier estimates of $100 per barrel, despite a weak global economy,&amp;rdquo; Crisil said in its report.
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
While the government promised to offset Rs.30,000 crore of the Rs.64,900 crore registered as losses from selling fuel below cost by the oil refiners in the first half of 2011-12, there were delays in disbursement. In addition, a contribution of Rs.21,633 crore was also been made by oil and gas explorers, including Oil and Natural Gas Corp. Ltd, Oil India Ltd and GAIL (India) Ltd, as discounts. The residual Rs.13,267 crore had to be absorbed by the refiners.
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
With crude oil prices averaging $113 per barrel in the first nine months of the first year, compared with the expectation of $110 per barrel, the losses on this front amounted to Rs.973 billion, said a 7 March report from the IDBI Capital Market Services Ltd equity research desk.
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&amp;ldquo;Further, upstream subsidy burden stood at 37.9% in 9MFY12, which we expect to increase to 42% in FY12E,&amp;rdquo;&amp;emsp;it said. &amp;ldquo;Also, government contribution till date announced is at Rs.300 bn (billion), which is just 31% of the total UR (under-recovery). Consequently, oil marketing companies are facing severe liquidity concern and their debt levels are at all-time high levels. If crude oil price remains at current levels then total under-recoveries may go up to Rs.1.4tr in FY12E.&amp;rdquo;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
IOC, HPCL and BPCL would have posted a combined net profit of Rs.5,246 crore for the year ended 31 March 2011, had they not absorbed a notional cumulative loss of Rs.6,894 crore on selling fuel below cost.
&lt;/div&gt;&#039;,
	&#039;credit_writer&#039; =&gt; &#039;Live Mint, 14 March, 2012, http://www.livemint.com/2012/03/13215155/Oil-firms8217-losses-on-fue.html?atype=tp&#039;,
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Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the...&#039;
$disp = &#039;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the nation&amp;rsquo;s largest fuel retailer.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Such an increase will impact the financials of government-owned OMCs such as IOC, Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. 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Petrol price increases have been put on hold due to the state assembly elections in Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The total losses on this account to be borne by refiners this fiscal is expected at Rs.1.32 trillion compared with Rs.78,190 crore last year, according to the petroleum ministry. In the nine months ended December, it stood at Rs.97,313 crore.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Credit rating firm Crisil Ltd said in a report last month that it expects the Congress-led United Progressive Alliance government to raise the prices of regulated fuels such as diesel, cooking gas and kerosene in the wake of rising crude oil prices due to &amp;ldquo;ongoing geopolitical tensions&amp;rdquo; over Iran. India depends on imports to meet 80% of its oil needs.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&amp;ldquo;Average crude oil prices will remain firm in the range of $110-120 per barrel during 2012, higher than the earlier estimates of $100 per barrel, despite a weak global economy,&amp;rdquo; Crisil said in its report.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;While the government promised to offset Rs.30,000 crore of the Rs.64,900 crore registered as losses from selling fuel below cost by the oil refiners in the first half of 2011-12, there were delays in disbursement. In addition, a contribution of Rs.21,633 crore was also been made by oil and gas explorers, including Oil and Natural Gas Corp. Ltd, Oil India Ltd and GAIL (India) Ltd, as discounts. 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Consequently, oil marketing companies are facing severe liquidity concern and their debt levels are at all-time high levels. If crude oil price remains at current levels then total under-recoveries may go up to Rs.1.4tr in FY12E.&amp;rdquo;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;IOC, HPCL and BPCL would have posted a combined net profit of Rs.5,246 crore for theyear ended 31 March 2011, had they not absorbed a notionalcumulativelossof Rs.6,894 crore on selling fuel below cost.&lt;/div&gt;&#039;
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Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the..."/>
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                <strong>Oil firms’ losses on fuel sales may spike next fiscal-Utpal Bhaskar</strong></h1>
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                <div style="text-align: justify"><br /></div><div style="text-align: justify">Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the nation&rsquo;s largest fuel retailer.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Such an increase will impact the financials of government-owned OMCs such as IOC, Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL), which currently register losses from this of Rs.439, Rs.12.04 and Rs.28.54 on a cooking gas cylinder, one litre of diesel and the same volume of kerosene, respectively.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">According to the petroleum ministry, OMCs currently register a daily under-recovery of around Rs.465 crore.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The average price of crude oil in the Indian energy basket on 13 March was $124.84 per barrel.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">While India partially deregulated fuel prices in June 2010, allowing government-owned OMCs to fix the price of petrol instead of selling it at government-determined rates, prices are only raised after government approval. Petrol price increases have been put on hold due to the state assembly elections in Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The total losses on this account to be borne by refiners this fiscal is expected at Rs.1.32 trillion compared with Rs.78,190 crore last year, according to the petroleum ministry. In the nine months ended December, it stood at Rs.97,313 crore.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Credit rating firm Crisil Ltd said in a report last month that it expects the Congress-led United Progressive Alliance government to raise the prices of regulated fuels such as diesel, cooking gas and kerosene in the wake of rising crude oil prices due to &ldquo;ongoing geopolitical tensions&rdquo; over Iran. India depends on imports to meet 80% of its oil needs.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;Average crude oil prices will remain firm in the range of $110-120 per barrel during 2012, higher than the earlier estimates of $100 per barrel, despite a weak global economy,&rdquo; Crisil said in its report.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">While the government promised to offset Rs.30,000 crore of the Rs.64,900 crore registered as losses from selling fuel below cost by the oil refiners in the first half of 2011-12, there were delays in disbursement. In addition, a contribution of Rs.21,633 crore was also been made by oil and gas explorers, including Oil and Natural Gas Corp. Ltd, Oil India Ltd and GAIL (India) Ltd, as discounts. The residual Rs.13,267 crore had to be absorbed by the refiners.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">With crude oil prices averaging $113 per barrel in the first nine months of the first year, compared with the expectation of $110 per barrel, the losses on this front amounted to Rs.973 billion, said a 7 March report from the IDBI Capital Market Services Ltd equity research desk.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;Further, upstream subsidy burden stood at 37.9% in 9MFY12, which we expect to increase to 42% in FY12E,&rdquo;&emsp;it said. &ldquo;Also, government contribution till date announced is at Rs.300 bn (billion), which is just 31% of the total UR (under-recovery). Consequently, oil marketing companies are facing severe liquidity concern and their debt levels are at all-time high levels. If crude oil price remains at current levels then total under-recoveries may go up to Rs.1.4tr in FY12E.&rdquo;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">IOC, HPCL and BPCL would have posted a combined net profit of Rs.5,246 crore for theyear ended 31 March 2011, had they not absorbed a notionalcumulativelossof Rs.6,894 crore on selling fuel below cost.</div>               </font>
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    <link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f170ac7e12f-trace').style.display = (document.getElementById('cakeErr67f170ac7e12f-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr67f170ac7e12f-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f170ac7e12f-code').style.display = (document.getElementById('cakeErr67f170ac7e12f-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f170ac7e12f-context').style.display = (document.getElementById('cakeErr67f170ac7e12f-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr67f170ac7e12f-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700">&lt;</span><span style="color: #0000BB">head</span><span style="color: #007700">&gt;
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<code><span style="color: #000000"><span style="color: #0000BB">&nbsp;&nbsp;&nbsp;&nbsp;</span><span style="color: #007700">&lt;</span><span style="color: #0000BB">meta&nbsp;http</span><span style="color: #007700">-</span><span style="color: #0000BB">equiv</span><span style="color: #007700">=</span><span style="color: #DD0000">"Content-Type"&nbsp;</span><span style="color: #0000BB">content</span><span style="color: #007700">=</span><span style="color: #DD0000">"text/html;&nbsp;charset=utf-8"</span><span style="color: #007700">/&gt;
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Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the nation&amp;rsquo;s largest fuel retailer.
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&lt;br /&gt;
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Such an increase will impact the financials of government-owned OMCs such as IOC, Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL), which currently register losses from this of Rs.439, Rs.12.04 and Rs.28.54 on a cooking gas cylinder, one litre of diesel and the same volume of kerosene, respectively.
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&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
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According to the petroleum ministry, OMCs currently register a daily under-recovery of around Rs.465 crore.
&lt;/div&gt;
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&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
The average price of crude oil in the Indian energy basket on 13 March was $124.84 per barrel.
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&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
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While India partially deregulated fuel prices in June 2010, allowing government-owned OMCs to fix the price of petrol instead of selling it at government-determined rates, prices are only raised after government approval. Petrol price increases have been put on hold due to the state assembly elections in Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa.
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&lt;br /&gt;
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The total losses on this account to be borne by refiners this fiscal is expected at Rs.1.32 trillion compared with Rs.78,190 crore last year, according to the petroleum ministry. In the nine months ended December, it stood at Rs.97,313 crore.
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&lt;br /&gt;
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Credit rating firm Crisil Ltd said in a report last month that it expects the Congress-led United Progressive Alliance government to raise the prices of regulated fuels such as diesel, cooking gas and kerosene in the wake of rising crude oil prices due to &amp;ldquo;ongoing geopolitical tensions&amp;rdquo; over Iran. India depends on imports to meet 80% of its oil needs.
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&amp;ldquo;Average crude oil prices will remain firm in the range of $110-120 per barrel during 2012, higher than the earlier estimates of $100 per barrel, despite a weak global economy,&amp;rdquo; Crisil said in its report.
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&lt;br /&gt;
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While the government promised to offset Rs.30,000 crore of the Rs.64,900 crore registered as losses from selling fuel below cost by the oil refiners in the first half of 2011-12, there were delays in disbursement. In addition, a contribution of Rs.21,633 crore was also been made by oil and gas explorers, including Oil and Natural Gas Corp. Ltd, Oil India Ltd and GAIL (India) Ltd, as discounts. The residual Rs.13,267 crore had to be absorbed by the refiners.
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With crude oil prices averaging $113 per barrel in the first nine months of the first year, compared with the expectation of $110 per barrel, the losses on this front amounted to Rs.973 billion, said a 7 March report from the IDBI Capital Market Services Ltd equity research desk.
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&amp;ldquo;Further, upstream subsidy burden stood at 37.9% in 9MFY12, which we expect to increase to 42% in FY12E,&amp;rdquo;&amp;emsp;it said. &amp;ldquo;Also, government contribution till date announced is at Rs.300 bn (billion), which is just 31% of the total UR (under-recovery). Consequently, oil marketing companies are facing severe liquidity concern and their debt levels are at all-time high levels. If crude oil price remains at current levels then total under-recoveries may go up to Rs.1.4tr in FY12E.&amp;rdquo;
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IOC, HPCL and BPCL would have posted a combined net profit of Rs.5,246 crore for the year ended 31 March 2011, had they not absorbed a notional cumulative loss of Rs.6,894 crore on selling fuel below cost.
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Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the nation&amp;rsquo;s largest fuel retailer.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Such an increase will impact the financials of government-owned OMCs such as IOC, Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL), which currently register losses from this of Rs.439, Rs.12.04 and Rs.28.54 on a cooking gas cylinder, one litre of diesel and the same volume of kerosene, respectively.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;According to the petroleum ministry, OMCs currently register a daily under-recovery of around Rs.465 crore.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The average price of crude oil in the Indian energy basket on 13 March was $124.84 per barrel.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;While India partially deregulated fuel prices in June 2010, allowing government-owned OMCs to fix the price of petrol instead of selling it at government-determined rates, prices are only raised after government approval. Petrol price increases have been put on hold due to the state assembly elections in Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The total losses on this account to be borne by refiners this fiscal is expected at Rs.1.32 trillion compared with Rs.78,190 crore last year, according to the petroleum ministry. In the nine months ended December, it stood at Rs.97,313 crore.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Credit rating firm Crisil Ltd said in a report last month that it expects the Congress-led United Progressive Alliance government to raise the prices of regulated fuels such as diesel, cooking gas and kerosene in the wake of rising crude oil prices due to &amp;ldquo;ongoing geopolitical tensions&amp;rdquo; over Iran. India depends on imports to meet 80% of its oil needs.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&amp;ldquo;Average crude oil prices will remain firm in the range of $110-120 per barrel during 2012, higher than the earlier estimates of $100 per barrel, despite a weak global economy,&amp;rdquo; Crisil said in its report.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;While the government promised to offset Rs.30,000 crore of the Rs.64,900 crore registered as losses from selling fuel below cost by the oil refiners in the first half of 2011-12, there were delays in disbursement. In addition, a contribution of Rs.21,633 crore was also been made by oil and gas explorers, including Oil and Natural Gas Corp. Ltd, Oil India Ltd and GAIL (India) Ltd, as discounts. The residual Rs.13,267 crore had to be absorbed by the refiners.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;With crude oil prices averaging $113 per barrel in the first nine months of the first year, compared with the expectation of $110 per barrel, the losses on this front amounted to Rs.973 billion, said a 7 March report from the IDBI Capital Market Services Ltd equity research desk.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&amp;ldquo;Further, upstream subsidy burden stood at 37.9% in 9MFY12, which we expect to increase to 42% in FY12E,&amp;rdquo;&amp;emsp;it said. &amp;ldquo;Also, government contribution till date announced is at Rs.300 bn (billion), which is just 31% of the total UR (under-recovery). Consequently, oil marketing companies are facing severe liquidity concern and their debt levels are at all-time high levels. If crude oil price remains at current levels then total under-recoveries may go up to Rs.1.4tr in FY12E.&amp;rdquo;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;IOC, HPCL and BPCL would have posted a combined net profit of Rs.5,246 crore for theyear ended 31 March 2011, had they not absorbed a notionalcumulativelossof Rs.6,894 crore on selling fuel below cost.&lt;/div&gt;&#039;,
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Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the nation&amp;rsquo;s largest fuel retailer.
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&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
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Such an increase will impact the financials of government-owned OMCs such as IOC, Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL), which currently register losses from this of Rs.439, Rs.12.04 and Rs.28.54 on a cooking gas cylinder, one litre of diesel and the same volume of kerosene, respectively.
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
According to the petroleum ministry, OMCs currently register a daily under-recovery of around Rs.465 crore.
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
The average price of crude oil in the Indian energy basket on 13 March was $124.84 per barrel.
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
While India partially deregulated fuel prices in June 2010, allowing government-owned OMCs to fix the price of petrol instead of selling it at government-determined rates, prices are only raised after government approval. Petrol price increases have been put on hold due to the state assembly elections in Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa.
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
The total losses on this account to be borne by refiners this fiscal is expected at Rs.1.32 trillion compared with Rs.78,190 crore last year, according to the petroleum ministry. In the nine months ended December, it stood at Rs.97,313 crore.
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
Credit rating firm Crisil Ltd said in a report last month that it expects the Congress-led United Progressive Alliance government to raise the prices of regulated fuels such as diesel, cooking gas and kerosene in the wake of rising crude oil prices due to &amp;ldquo;ongoing geopolitical tensions&amp;rdquo; over Iran. India depends on imports to meet 80% of its oil needs.
&lt;/div&gt;
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&amp;ldquo;Average crude oil prices will remain firm in the range of $110-120 per barrel during 2012, higher than the earlier estimates of $100 per barrel, despite a weak global economy,&amp;rdquo; Crisil said in its report.
&lt;/div&gt;
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&lt;br /&gt;
&lt;/div&gt;
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While the government promised to offset Rs.30,000 crore of the Rs.64,900 crore registered as losses from selling fuel below cost by the oil refiners in the first half of 2011-12, there were delays in disbursement. In addition, a contribution of Rs.21,633 crore was also been made by oil and gas explorers, including Oil and Natural Gas Corp. Ltd, Oil India Ltd and GAIL (India) Ltd, as discounts. The residual Rs.13,267 crore had to be absorbed by the refiners.
&lt;/div&gt;
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&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
With crude oil prices averaging $113 per barrel in the first nine months of the first year, compared with the expectation of $110 per barrel, the losses on this front amounted to Rs.973 billion, said a 7 March report from the IDBI Capital Market Services Ltd equity research desk.
&lt;/div&gt;
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&lt;br /&gt;
&lt;/div&gt;
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&amp;ldquo;Further, upstream subsidy burden stood at 37.9% in 9MFY12, which we expect to increase to 42% in FY12E,&amp;rdquo;&amp;emsp;it said. &amp;ldquo;Also, government contribution till date announced is at Rs.300 bn (billion), which is just 31% of the total UR (under-recovery). Consequently, oil marketing companies are facing severe liquidity concern and their debt levels are at all-time high levels. If crude oil price remains at current levels then total under-recoveries may go up to Rs.1.4tr in FY12E.&amp;rdquo;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
&lt;br /&gt;
&lt;/div&gt;
&lt;div style=&quot;text-align: justify&quot;&gt;
IOC, HPCL and BPCL would have posted a combined net profit of Rs.5,246 crore for the year ended 31 March 2011, had they not absorbed a notional cumulative loss of Rs.6,894 crore on selling fuel below cost.
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Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the...&#039;
$disp = &#039;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the nation&amp;rsquo;s largest fuel retailer.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Such an increase will impact the financials of government-owned OMCs such as IOC, Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL), which currently register losses from this of Rs.439, Rs.12.04 and Rs.28.54 on a cooking gas cylinder, one litre of diesel and the same volume of kerosene, respectively.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;According to the petroleum ministry, OMCs currently register a daily under-recovery of around Rs.465 crore.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The average price of crude oil in the Indian energy basket on 13 March was $124.84 per barrel.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;While India partially deregulated fuel prices in June 2010, allowing government-owned OMCs to fix the price of petrol instead of selling it at government-determined rates, prices are only raised after government approval. Petrol price increases have been put on hold due to the state assembly elections in Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The total losses on this account to be borne by refiners this fiscal is expected at Rs.1.32 trillion compared with Rs.78,190 crore last year, according to the petroleum ministry. In the nine months ended December, it stood at Rs.97,313 crore.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Credit rating firm Crisil Ltd said in a report last month that it expects the Congress-led United Progressive Alliance government to raise the prices of regulated fuels such as diesel, cooking gas and kerosene in the wake of rising crude oil prices due to &amp;ldquo;ongoing geopolitical tensions&amp;rdquo; over Iran. India depends on imports to meet 80% of its oil needs.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&amp;ldquo;Average crude oil prices will remain firm in the range of $110-120 per barrel during 2012, higher than the earlier estimates of $100 per barrel, despite a weak global economy,&amp;rdquo; Crisil said in its report.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;While the government promised to offset Rs.30,000 crore of the Rs.64,900 crore registered as losses from selling fuel below cost by the oil refiners in the first half of 2011-12, there were delays in disbursement. In addition, a contribution of Rs.21,633 crore was also been made by oil and gas explorers, including Oil and Natural Gas Corp. Ltd, Oil India Ltd and GAIL (India) Ltd, as discounts. The residual Rs.13,267 crore had to be absorbed by the refiners.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;With crude oil prices averaging $113 per barrel in the first nine months of the first year, compared with the expectation of $110 per barrel, the losses on this front amounted to Rs.973 billion, said a 7 March report from the IDBI Capital Market Services Ltd equity research desk.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&amp;ldquo;Further, upstream subsidy burden stood at 37.9% in 9MFY12, which we expect to increase to 42% in FY12E,&amp;rdquo;&amp;emsp;it said. &amp;ldquo;Also, government contribution till date announced is at Rs.300 bn (billion), which is just 31% of the total UR (under-recovery). Consequently, oil marketing companies are facing severe liquidity concern and their debt levels are at all-time high levels. If crude oil price remains at current levels then total under-recoveries may go up to Rs.1.4tr in FY12E.&amp;rdquo;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;IOC, HPCL and BPCL would have posted a combined net profit of Rs.5,246 crore for theyear ended 31 March 2011, had they not absorbed a notionalcumulativelossof Rs.6,894 crore on selling fuel below cost.&lt;/div&gt;&#039;
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Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the..."/>
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                <strong>Oil firms’ losses on fuel sales may spike next fiscal-Utpal Bhaskar</strong></h1>
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                <div style="text-align: justify"><br /></div><div style="text-align: justify">Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the nation&rsquo;s largest fuel retailer.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Such an increase will impact the financials of government-owned OMCs such as IOC, Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL), which currently register losses from this of Rs.439, Rs.12.04 and Rs.28.54 on a cooking gas cylinder, one litre of diesel and the same volume of kerosene, respectively.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">According to the petroleum ministry, OMCs currently register a daily under-recovery of around Rs.465 crore.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The average price of crude oil in the Indian energy basket on 13 March was $124.84 per barrel.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">While India partially deregulated fuel prices in June 2010, allowing government-owned OMCs to fix the price of petrol instead of selling it at government-determined rates, prices are only raised after government approval. Petrol price increases have been put on hold due to the state assembly elections in Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The total losses on this account to be borne by refiners this fiscal is expected at Rs.1.32 trillion compared with Rs.78,190 crore last year, according to the petroleum ministry. In the nine months ended December, it stood at Rs.97,313 crore.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Credit rating firm Crisil Ltd said in a report last month that it expects the Congress-led United Progressive Alliance government to raise the prices of regulated fuels such as diesel, cooking gas and kerosene in the wake of rising crude oil prices due to &ldquo;ongoing geopolitical tensions&rdquo; over Iran. India depends on imports to meet 80% of its oil needs.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;Average crude oil prices will remain firm in the range of $110-120 per barrel during 2012, higher than the earlier estimates of $100 per barrel, despite a weak global economy,&rdquo; Crisil said in its report.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">While the government promised to offset Rs.30,000 crore of the Rs.64,900 crore registered as losses from selling fuel below cost by the oil refiners in the first half of 2011-12, there were delays in disbursement. In addition, a contribution of Rs.21,633 crore was also been made by oil and gas explorers, including Oil and Natural Gas Corp. Ltd, Oil India Ltd and GAIL (India) Ltd, as discounts. The residual Rs.13,267 crore had to be absorbed by the refiners.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">With crude oil prices averaging $113 per barrel in the first nine months of the first year, compared with the expectation of $110 per barrel, the losses on this front amounted to Rs.973 billion, said a 7 March report from the IDBI Capital Market Services Ltd equity research desk.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;Further, upstream subsidy burden stood at 37.9% in 9MFY12, which we expect to increase to 42% in FY12E,&rdquo;&emsp;it said. &ldquo;Also, government contribution till date announced is at Rs.300 bn (billion), which is just 31% of the total UR (under-recovery). Consequently, oil marketing companies are facing severe liquidity concern and their debt levels are at all-time high levels. If crude oil price remains at current levels then total under-recoveries may go up to Rs.1.4tr in FY12E.&rdquo;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">IOC, HPCL and BPCL would have posted a combined net profit of Rs.5,246 crore for theyear ended 31 March 2011, had they not absorbed a notionalcumulativelossof Rs.6,894 crore on selling fuel below cost.</div>               </font>
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Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the nation&rsquo;s largest fuel retailer.
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Such an increase will impact the financials of government-owned OMCs such as IOC, Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL), which currently register losses from this of Rs.439, Rs.12.04 and Rs.28.54 on a cooking gas cylinder, one litre of diesel and the same volume of kerosene, respectively.
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According to the petroleum ministry, OMCs currently register a daily under-recovery of around Rs.465 crore.
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The average price of crude oil in the Indian energy basket on 13 March was $124.84 per barrel.
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While India partially deregulated fuel prices in June 2010, allowing government-owned OMCs to fix the price of petrol instead of selling it at government-determined rates, prices are only raised after government approval. Petrol price increases have been put on hold due to the state assembly elections in Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa.
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The total losses on this account to be borne by refiners this fiscal is expected at Rs.1.32 trillion compared with Rs.78,190 crore last year, according to the petroleum ministry. In the nine months ended December, it stood at Rs.97,313 crore.
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Credit rating firm Crisil Ltd said in a report last month that it expects the Congress-led United Progressive Alliance government to raise the prices of regulated fuels such as diesel, cooking gas and kerosene in the wake of rising crude oil prices due to &ldquo;ongoing geopolitical tensions&rdquo; over Iran. India depends on imports to meet 80% of its oil needs.
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&ldquo;Average crude oil prices will remain firm in the range of $110-120 per barrel during 2012, higher than the earlier estimates of $100 per barrel, despite a weak global economy,&rdquo; Crisil said in its report.
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<br />
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While the government promised to offset Rs.30,000 crore of the Rs.64,900 crore registered as losses from selling fuel below cost by the oil refiners in the first half of 2011-12, there were delays in disbursement. In addition, a contribution of Rs.21,633 crore was also been made by oil and gas explorers, including Oil and Natural Gas Corp. Ltd, Oil India Ltd and GAIL (India) Ltd, as discounts. The residual Rs.13,267 crore had to be absorbed by the refiners.
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<div style="text-align: justify">
<br />
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With crude oil prices averaging $113 per barrel in the first nine months of the first year, compared with the expectation of $110 per barrel, the losses on this front amounted to Rs.973 billion, said a 7 March report from the IDBI Capital Market Services Ltd equity research desk.
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&ldquo;Further, upstream subsidy burden stood at 37.9% in 9MFY12, which we expect to increase to 42% in FY12E,&rdquo;&emsp;it said. &ldquo;Also, government contribution till date announced is at Rs.300 bn (billion), which is just 31% of the total UR (under-recovery). Consequently, oil marketing companies are facing severe liquidity concern and their debt levels are at all-time high levels. If crude oil price remains at current levels then total under-recoveries may go up to Rs.1.4tr in FY12E.&rdquo;
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IOC, HPCL and BPCL would have posted a combined net profit of Rs.5,246 crore for the year ended 31 March 2011, had they not absorbed a notional cumulative loss of Rs.6,894 crore on selling fuel below cost.
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	'metaTitle' => 'LATEST NEWS UPDATES | Oil firms’ losses on fuel sales may spike next fiscal-Utpal Bhaskar',
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Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the...',
	'disp' => '<div style="text-align: justify"><br /></div><div style="text-align: justify">Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the nation&rsquo;s largest fuel retailer.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Such an increase will impact the financials of government-owned OMCs such as IOC, Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL), which currently register losses from this of Rs.439, Rs.12.04 and Rs.28.54 on a cooking gas cylinder, one litre of diesel and the same volume of kerosene, respectively.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">According to the petroleum ministry, OMCs currently register a daily under-recovery of around Rs.465 crore.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The average price of crude oil in the Indian energy basket on 13 March was $124.84 per barrel.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">While India partially deregulated fuel prices in June 2010, allowing government-owned OMCs to fix the price of petrol instead of selling it at government-determined rates, prices are only raised after government approval. Petrol price increases have been put on hold due to the state assembly elections in Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The total losses on this account to be borne by refiners this fiscal is expected at Rs.1.32 trillion compared with Rs.78,190 crore last year, according to the petroleum ministry. In the nine months ended December, it stood at Rs.97,313 crore.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Credit rating firm Crisil Ltd said in a report last month that it expects the Congress-led United Progressive Alliance government to raise the prices of regulated fuels such as diesel, cooking gas and kerosene in the wake of rising crude oil prices due to &ldquo;ongoing geopolitical tensions&rdquo; over Iran. India depends on imports to meet 80% of its oil needs.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;Average crude oil prices will remain firm in the range of $110-120 per barrel during 2012, higher than the earlier estimates of $100 per barrel, despite a weak global economy,&rdquo; Crisil said in its report.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">While the government promised to offset Rs.30,000 crore of the Rs.64,900 crore registered as losses from selling fuel below cost by the oil refiners in the first half of 2011-12, there were delays in disbursement. In addition, a contribution of Rs.21,633 crore was also been made by oil and gas explorers, including Oil and Natural Gas Corp. Ltd, Oil India Ltd and GAIL (India) Ltd, as discounts. The residual Rs.13,267 crore had to be absorbed by the refiners.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">With crude oil prices averaging $113 per barrel in the first nine months of the first year, compared with the expectation of $110 per barrel, the losses on this front amounted to Rs.973 billion, said a 7 March report from the IDBI Capital Market Services Ltd equity research desk.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;Further, upstream subsidy burden stood at 37.9% in 9MFY12, which we expect to increase to 42% in FY12E,&rdquo;&emsp;it said. &ldquo;Also, government contribution till date announced is at Rs.300 bn (billion), which is just 31% of the total UR (under-recovery). Consequently, oil marketing companies are facing severe liquidity concern and their debt levels are at all-time high levels. If crude oil price remains at current levels then total under-recoveries may go up to Rs.1.4tr in FY12E.&rdquo;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">IOC, HPCL and BPCL would have posted a combined net profit of Rs.5,246 crore for theyear ended 31 March 2011, had they not absorbed a notionalcumulativelossof Rs.6,894 crore on selling fuel below cost.</div>',
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	'title' => 'Oil firms’ losses on fuel sales may spike next fiscal-Utpal Bhaskar',
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<br />
</div>
<div style="text-align: justify">
Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the nation&rsquo;s largest fuel retailer.
</div>
<div style="text-align: justify">
<br />
</div>
<div style="text-align: justify">
Such an increase will impact the financials of government-owned OMCs such as IOC, Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL), which currently register losses from this of Rs.439, Rs.12.04 and Rs.28.54 on a cooking gas cylinder, one litre of diesel and the same volume of kerosene, respectively.
</div>
<div style="text-align: justify">
<br />
</div>
<div style="text-align: justify">
According to the petroleum ministry, OMCs currently register a daily under-recovery of around Rs.465 crore.
</div>
<div style="text-align: justify">
<br />
</div>
<div style="text-align: justify">
The average price of crude oil in the Indian energy basket on 13 March was $124.84 per barrel.
</div>
<div style="text-align: justify">
<br />
</div>
<div style="text-align: justify">
While India partially deregulated fuel prices in June 2010, allowing government-owned OMCs to fix the price of petrol instead of selling it at government-determined rates, prices are only raised after government approval. Petrol price increases have been put on hold due to the state assembly elections in Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa.
</div>
<div style="text-align: justify">
<br />
</div>
<div style="text-align: justify">
The total losses on this account to be borne by refiners this fiscal is expected at Rs.1.32 trillion compared with Rs.78,190 crore last year, according to the petroleum ministry. In the nine months ended December, it stood at Rs.97,313 crore.
</div>
<div style="text-align: justify">
<br />
</div>
<div style="text-align: justify">
Credit rating firm Crisil Ltd said in a report last month that it expects the Congress-led United Progressive Alliance government to raise the prices of regulated fuels such as diesel, cooking gas and kerosene in the wake of rising crude oil prices due to &ldquo;ongoing geopolitical tensions&rdquo; over Iran. India depends on imports to meet 80% of its oil needs.
</div>
<div style="text-align: justify">
<br />
</div>
<div style="text-align: justify">
&ldquo;Average crude oil prices will remain firm in the range of $110-120 per barrel during 2012, higher than the earlier estimates of $100 per barrel, despite a weak global economy,&rdquo; Crisil said in its report.
</div>
<div style="text-align: justify">
<br />
</div>
<div style="text-align: justify">
While the government promised to offset Rs.30,000 crore of the Rs.64,900 crore registered as losses from selling fuel below cost by the oil refiners in the first half of 2011-12, there were delays in disbursement. In addition, a contribution of Rs.21,633 crore was also been made by oil and gas explorers, including Oil and Natural Gas Corp. Ltd, Oil India Ltd and GAIL (India) Ltd, as discounts. The residual Rs.13,267 crore had to be absorbed by the refiners.
</div>
<div style="text-align: justify">
<br />
</div>
<div style="text-align: justify">
With crude oil prices averaging $113 per barrel in the first nine months of the first year, compared with the expectation of $110 per barrel, the losses on this front amounted to Rs.973 billion, said a 7 March report from the IDBI Capital Market Services Ltd equity research desk.
</div>
<div style="text-align: justify">
<br />
</div>
<div style="text-align: justify">
&ldquo;Further, upstream subsidy burden stood at 37.9% in 9MFY12, which we expect to increase to 42% in FY12E,&rdquo;&emsp;it said. &ldquo;Also, government contribution till date announced is at Rs.300 bn (billion), which is just 31% of the total UR (under-recovery). Consequently, oil marketing companies are facing severe liquidity concern and their debt levels are at all-time high levels. If crude oil price remains at current levels then total under-recoveries may go up to Rs.1.4tr in FY12E.&rdquo;
</div>
<div style="text-align: justify">
<br />
</div>
<div style="text-align: justify">
IOC, HPCL and BPCL would have posted a combined net profit of Rs.5,246 crore for the year ended 31 March 2011, had they not absorbed a notional cumulative loss of Rs.6,894 crore on selling fuel below cost.
</div>',
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Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the...'
$disp = '<div style="text-align: justify"><br /></div><div style="text-align: justify">Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the nation&rsquo;s largest fuel retailer.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Such an increase will impact the financials of government-owned OMCs such as IOC, Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL), which currently register losses from this of Rs.439, Rs.12.04 and Rs.28.54 on a cooking gas cylinder, one litre of diesel and the same volume of kerosene, respectively.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">According to the petroleum ministry, OMCs currently register a daily under-recovery of around Rs.465 crore.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The average price of crude oil in the Indian energy basket on 13 March was $124.84 per barrel.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">While India partially deregulated fuel prices in June 2010, allowing government-owned OMCs to fix the price of petrol instead of selling it at government-determined rates, prices are only raised after government approval. Petrol price increases have been put on hold due to the state assembly elections in Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The total losses on this account to be borne by refiners this fiscal is expected at Rs.1.32 trillion compared with Rs.78,190 crore last year, according to the petroleum ministry. In the nine months ended December, it stood at Rs.97,313 crore.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Credit rating firm Crisil Ltd said in a report last month that it expects the Congress-led United Progressive Alliance government to raise the prices of regulated fuels such as diesel, cooking gas and kerosene in the wake of rising crude oil prices due to &ldquo;ongoing geopolitical tensions&rdquo; over Iran. India depends on imports to meet 80% of its oil needs.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;Average crude oil prices will remain firm in the range of $110-120 per barrel during 2012, higher than the earlier estimates of $100 per barrel, despite a weak global economy,&rdquo; Crisil said in its report.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">While the government promised to offset Rs.30,000 crore of the Rs.64,900 crore registered as losses from selling fuel below cost by the oil refiners in the first half of 2011-12, there were delays in disbursement. In addition, a contribution of Rs.21,633 crore was also been made by oil and gas explorers, including Oil and Natural Gas Corp. Ltd, Oil India Ltd and GAIL (India) Ltd, as discounts. The residual Rs.13,267 crore had to be absorbed by the refiners.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">With crude oil prices averaging $113 per barrel in the first nine months of the first year, compared with the expectation of $110 per barrel, the losses on this front amounted to Rs.973 billion, said a 7 March report from the IDBI Capital Market Services Ltd equity research desk.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;Further, upstream subsidy burden stood at 37.9% in 9MFY12, which we expect to increase to 42% in FY12E,&rdquo;&emsp;it said. &ldquo;Also, government contribution till date announced is at Rs.300 bn (billion), which is just 31% of the total UR (under-recovery). Consequently, oil marketing companies are facing severe liquidity concern and their debt levels are at all-time high levels. If crude oil price remains at current levels then total under-recoveries may go up to Rs.1.4tr in FY12E.&rdquo;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">IOC, HPCL and BPCL would have posted a combined net profit of Rs.5,246 crore for theyear ended 31 March 2011, had they not absorbed a notionalcumulativelossof Rs.6,894 crore on selling fuel below cost.</div>'
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Oil firms’ losses on fuel sales may spike next fiscal-Utpal Bhaskar

Government-owned oil marketing companies (OMCs) may witness a 52% jump in losses on account of selling fuel below cost at state-mandated prices to Rs.2 trillion in the next financial year, said R.S. Butola, chairman, Indian Oil Corp. Ltd (IOC), the nation’s largest fuel retailer. Such an increase will impact the financials of government-owned OMCs such as IOC, Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL), which currently register losses from this of Rs.439, Rs.12.04 and Rs.28.54 on a cooking gas cylinder, one litre of diesel and the same volume of kerosene, respectively. According to the petroleum ministry, OMCs currently register a daily under-recovery of around Rs.465 crore. The average price of crude oil in the Indian energy basket on 13 March was $124.84 per barrel. While India partially deregulated fuel prices in June 2010, allowing government-owned OMCs to fix the price of petrol instead of selling it at government-determined rates, prices are only raised after government approval. Petrol price increases have been put on hold due to the state assembly elections in Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa. The total losses on this account to be borne by refiners this fiscal is expected at Rs.1.32 trillion compared with Rs.78,190 crore last year, according to the petroleum ministry. In the nine months ended December, it stood at Rs.97,313 crore. Credit rating firm Crisil Ltd said in a report last month that it expects the Congress-led United Progressive Alliance government to raise the prices of regulated fuels such as diesel, cooking gas and kerosene in the wake of rising crude oil prices due to “ongoing geopolitical tensions” over Iran. India depends on imports to meet 80% of its oil needs. “Average crude oil prices will remain firm in the range of $110-120 per barrel during 2012, higher than the earlier estimates of $100 per barrel, despite a weak global economy,” Crisil said in its report. While the government promised to offset Rs.30,000 crore of the Rs.64,900 crore registered as losses from selling fuel below cost by the oil refiners in the first half of 2011-12, there were delays in disbursement. In addition, a contribution of Rs.21,633 crore was also been made by oil and gas explorers, including Oil and Natural Gas Corp. Ltd, Oil India Ltd and GAIL (India) Ltd, as discounts. The residual Rs.13,267 crore had to be absorbed by the refiners. With crude oil prices averaging $113 per barrel in the first nine months of the first year, compared with the expectation of $110 per barrel, the losses on this front amounted to Rs.973 billion, said a 7 March report from the IDBI Capital Market Services Ltd equity research desk. “Further, upstream subsidy burden stood at 37.9% in 9MFY12, which we expect to increase to 42% in FY12E,” it said. “Also, government contribution till date announced is at Rs.300 bn (billion), which is just 31% of the total UR (under-recovery). Consequently, oil marketing companies are facing severe liquidity concern and their debt levels are at all-time high levels. If crude oil price remains at current levels then total under-recoveries may go up to Rs.1.4tr in FY12E.” IOC, HPCL and BPCL would have posted a combined net profit of Rs.5,246 crore for theyear ended 31 March 2011, had they not absorbed a notionalcumulativelossof Rs.6,894 crore on selling fuel below cost.