India’s OMCs post losses

India’s state-run oil marketing companies (OMCs) Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp. are likely to incur combined revenue losses of about Rs430 billion (US$9.21 billion) in the current financial year through March, S. Sundareshan, the country’s newly appointed oil secretary said. The revenue loss they suffer on such sales is compensated partly by the federal government through subsidies and partly by discounts from state-run upstream companies. Sundareshan said the OMCs incurred revenue losses of Rs290 billion (US$6.21 billion) in the April-December 2009 period. Upstream companies have already contributed nearly Rs85 billion (US$1.82 billion), while the government has agreed to provide an additional Rs120 billion (US$2.57 billion). (February 3, 2010)