Debt burden, falling rupee add to refiners' woes
22.05.12
This was the worst ever year for the oil refining trio of IndianOil, Bharat Petroleum Corporation and Hindustan Petroleum Corporation. And with no remedial policy measures in place, things could get even trickier in the future.
There was no change in the all-too familiar script of losses piling up on sale of subsidised fuels such as diesel, cooking gas and kerosene. As is the case each year, the Government was late in squaring these up with the refiners with the result that borrowings have hit the roof. Between IOC, HPCL and BPCL, the debt burden on their books is over Rs 1.4 lakh crore. Add the interest levy to this figure and the picture only gets scarier.
Biggest fear
Within oil industry circles, the biggest fear is that there just does not seem to be any solution coming in from the Government. “Decision making has come to a stop with the daily ruckus in Parliament. We have no option but to fend for ourselves now,” an official said.
Source: Hindu Business Line