BPCL, HPCL oppose IOC's call for de-regulating prices of petroleum products

India’s state-run oil marketing firms Bharat Petroleum Corp. Ltd. (BPCL) and Hindustan Petroleum Corp. Ltd. (HPCL) voiced their opposition to Indian Oil Corp.’s (IOC) call to deregulate prices of petroleum products, calling it a “retrograde step,” The Economic Times reported.
Because of the government’s fuel pricing policy, state-owned oil retailer IOC has incurred the biggest-ever quarterly loss amounting to Rs224.51 billion (US$4.2 billion.) in the first quarter of FY 2013. The government offers the three state-owned retailers subsidy for revenue losses on selling diesel fuel, cooking gas and kerosene, but they are compelled to take losses from the sale of petrol. BPCL has also posted a threefold increase in its quarterly loss, reaching Rs88.37 billion (US$1.6 billion) during the April-June period due to higher under-recoveries, compared to Rs26.52 billion (US$500 million) net loss for the corresponding period a year ago. Likewise, HPCL has reported losses worth Rs9,249 crore (US$1.7 billion) for the first quarter of the current fiscal year, compared to Rs3,080 crore (US$580 million) loss during the year-ago period. (August 20, 2012)