SOURCE:UTV
The global financial crisis has helped oil prices slump nearly half from its peak July prices of $145 a barrel. But are PSU oil companies smiling? Not really.
The PSU oil companies are still not seeing the light because the gloom of the depreciating rupee has clouded their gains.
For instance if we consider the oil prices and the corresponding losses then, for the last 15 day at an average of $82 a barrel for Indian crude basket, the per litre losses for BPCL and IOC are hardest hit for LPG. Thats followed by kerosene, then diesel and lastly petrol.
Bleeding PSUs per litre losseS (Rs/Litre) BPCL IOC Diesel 6.40 12.95Petrol 2.40 5.57Kerosene 24.60 29.19
Bleeding PSUs Rs/CylinderLPG 316.80 335.03
Absolute losses of oil companies have shrunk from Rs 2, 80,000 crore to Rs 1, 68,000 crore but this gain of about 42 percent has been offset by the weakening rupee.
In the last 3 months, the rupee has fallen by over 10% and for every one rupee that depreciates, the IOC loses Rs 300 crore.
Add to this the oil companies continue to face liquidity crunch. The fight for liquidity has made banks cagey. Industry officials say oil companies are squeezed to negotiate the interest rates. Also, the government has not yet issued bonds, which are awaited for Q4 of last year, Q1 and Q2 this year. But with parliamentary session begining on Monday, the companies expect the bonds to be issued soon.
Alas, fuel price cut may not happen anytime soon..
The global financial crisis has helped oil prices slump nearly half from its peak July prices of $145 a barrel. But are PSU oil companies smiling? Not really.
The PSU oil companies are still not seeing the light because the gloom of the depreciating rupee has clouded their gains.
For instance if we consider the oil prices and the corresponding losses then, for the last 15 day at an average of $82 a barrel for Indian crude basket, the per litre losses for BPCL and IOC are hardest hit for LPG. Thats followed by kerosene, then diesel and lastly petrol.
Bleeding PSUs per litre losseS (Rs/Litre) BPCL IOC Diesel 6.40 12.95Petrol 2.40 5.57Kerosene 24.60 29.19
Bleeding PSUs Rs/CylinderLPG 316.80 335.03
Absolute losses of oil companies have shrunk from Rs 2, 80,000 crore to Rs 1, 68,000 crore but this gain of about 42 percent has been offset by the weakening rupee.
In the last 3 months, the rupee has fallen by over 10% and for every one rupee that depreciates, the IOC loses Rs 300 crore.
Add to this the oil companies continue to face liquidity crunch. The fight for liquidity has made banks cagey. Industry officials say oil companies are squeezed to negotiate the interest rates. Also, the government has not yet issued bonds, which are awaited for Q4 of last year, Q1 and Q2 this year. But with parliamentary session begining on Monday, the companies expect the bonds to be issued soon.
Alas, fuel price cut may not happen anytime soon..
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