Oil marketing firms regulate supplies to help cap losses

State-owned oil marketing companies Indian Oil (IOC), Bharat Petroleum and Hindustan Petroleum fear a complete erosion of profits in 2008-2009, IOC Chairman and Managing Director Sarthak Behuria said, “The year is going to be very bad for the oil industry. In order to minimize losses on the sale of petroleum products-expected to cross Rs3 lakh crore (US$69.64 billion) this fiscal, the oil marketing firms have already started regulating supplies, especially diesel, to petrol pumps and LPG to agencies across the country. India is a net importer of both diesel and LPG. Parts of the southern and western regions have already witnessed long queues at petrol pumps because of low availability of fuel in the last few days. We have already made it clear that supplies of petroleum products will be strictly in line with domestic availability.” The last hike in petroleum product prices, together with cut in customs and excise duties, had only marginally offset the Rs2.45 lakh crore (US$56.88 billion) in projected revenue losses at that time. (July 8, 2008)<BR></P>