New Delhi: Public sector Indian Oil Corporation will sell bonds worth Rs 2,000 crore in January to tide over a financial crunch due to non-revision of fuel prices, its Chairman Sarthak Behuria said on Thursday.
"The company was losing Rs 165 crore per day on sale of petrol, diesel, LPG and kerosene, and was facing a shortfall in working capital fund," Behuria said.
Crude oil prices touched $100 a barrel mark on Wednesday evening in New York, triggering a possible government response to reduce the under-recoveries by public sector oil firms.
Indian Oil, Bharat Petroleum and Hindustan Petroleum are projected to lose Rs 69,753 crore on fuel sale as the government has not allowed them to raise prices in line with the price of imported crude.
IOC Director (Finance) S V Narasimhan said, "We are optimizing inventory, reducing working capital and maximizing throughput to mitigate the impact of rising crude oil prices."
The company's borrowings, which stood Rs 27,000 crore on September 30, 2007, have risen to over Rs 29,000 crore as it borrowed money to meet the working capital requirement in the absence of remunerative fuel prices.
IOC was selling petrol at a loss of Rs 9.20 a litre, diesel at Rs 10.9 per litre, LPG at Rs 332 per cylinder and kerosene at Rs 19.9 per litre.
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