A weak Indian Rupee, unyielding Crude Oil prices and an unsustainable petroleum subsidy policy by the Indian Government have resulted in Indian Oil Corporation ( IOC) reporting a massive loss of Rs. 22,451 crore for the quarter ended 30th June 2012.
India will have to urgently address its petroleum subsidy policy. The Oil Marketing Companies (HPCL, BPCL, IOCL), Upstream Oil Companies (ONGC, GAIL) and the Indian Government cannot continue to subsidise petroleum products consumed by the Indian public at this rate.
Despite the Oil Sector being a major source of revenue for the government via numerous duties levied at the state and central govenment level; massive subsidies have resulted in heavy borrowings for Oil marketing companies.
The article below highlights the ongoing crisis in the case of IOC, that has now pushed up its debt levels to almost Rs.90,000 Crores as of June 2012, and is incurring interest costs as it awaits reimbursement by the Government.
LINK:
IOC: Marred by uncertainties
India will have to urgently address its petroleum subsidy policy. The Oil Marketing Companies (HPCL, BPCL, IOCL), Upstream Oil Companies (ONGC, GAIL) and the Indian Government cannot continue to subsidise petroleum products consumed by the Indian public at this rate.
Despite the Oil Sector being a major source of revenue for the government via numerous duties levied at the state and central govenment level; massive subsidies have resulted in heavy borrowings for Oil marketing companies.
The article below highlights the ongoing crisis in the case of IOC, that has now pushed up its debt levels to almost Rs.90,000 Crores as of June 2012, and is incurring interest costs as it awaits reimbursement by the Government.
LINK:
IOC: Marred by uncertainties
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