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Energy Sector - 2
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#187
11-07-2007, 09:20 PM
<b>Oil firms bleeding but Govt puts off price hike</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Sai Narsimha, Director, Finance at the Indian Oil Corporation, says the company sees its losses going up by Rs 3,000 crore if global crude price continues to rise . "Our under-recoveries are coming out to be Rs 122 cr per day. We have incurred huge losses,” said Narsimha.

At the current prices the total revenue loss of oil companies stands at Rs 54,935 crore and total losses at Rs 60,000 crore. The Government has three options to help the oil companies: the first is to hike prices of petrol and diesel.

A marginal hike could be on the cards but<b> Gujarat elections and the Left could make the Government stay away from this politically sensitive decision</b>.

The second option is to cut excise duties on petrol and diesel, but Finance Minister P Chidambaram is strongly against this.

The third option is to issue more oil bonds or transfer a part of the cost burden to companies like the Oil and Natural Gas Commission and Gas Authority of India Limited. <!--QuoteEnd--><!--QuoteEEnd-->
Public sector companies are used to promote agenda to stay in power, they are not using sound economics.
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Energy Sector - 2 - by Guest - 05-25-2005, 04:22 AM
Energy Sector - 2 - by Guest - 05-25-2005, 06:14 AM
Energy Sector - 2 - by Naresh - 05-25-2005, 12:05 PM
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Energy Sector - 2 - by Naresh - 06-14-2005, 04:48 AM
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Energy Sector - 2 - by Capt M Kumar - 05-14-2008, 11:08 AM
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Energy Sector - 2 - by Capt M Kumar - 07-26-2008, 11:16 AM
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Energy Sector - 2 - by Capt M Kumar - 08-03-2008, 11:49 AM
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Energy Sector - 2 - by Capt M Kumar - 08-16-2008, 12:10 PM
Energy Sector - 2 - by Capt M Kumar - 08-23-2008, 10:41 AM
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Energy Sector - 2 - by Naresh - 11-20-2008, 03:27 AM
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Energy Sector - 2 - by Naresh - 01-24-2009, 04:34 AM
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Energy Sector - 2 - by Naresh - 01-07-2010, 04:56 AM
Energy Sector - 2 - by Capt M Kumar - 01-10-2010, 08:12 PM
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Energy Sector - 2 - by Capt M Kumar - 01-15-2010, 04:29 PM
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Energy Sector - 2 - by Capt M Kumar - 02-25-2010, 04:46 AM
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Energy Sector - 2 - by Capt M Kumar - 03-12-2010, 04:37 AM
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Energy Sector - 2 - by Arun_S - 03-23-2010, 10:14 PM
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