Business

Govt plans Rs 39,000-cr bailout for oil firms

  • HT Correspondent, Hindustan Times, New Delhi
  • |
  • Updated: May 22, 2012 01:05 IST

 In yet another bailout package, the government is planning a huge compensation of anywhere between Rs 39,000 crore and Rs 41,000 crore to save the three state-owned oil companies — Indian Oil, Hindustan Petroleum and Bharat Petroleum — from going into the red.

The combined losses of oil companies for 2011-12 have been projected at Rs 38,570 crore —with IOC posting a loss of Rs 20,544 crore, BPCL Rs 9,583 crore and HPCL Rs 8,443 crore in the wake of high global crude oil prices and non-revision of domestic fuel prices.

“With a cash support of Rs 41,020 crore, Indian Oil will be able to post a profit after tax (PAT) of Rs 1,352 crore, BPCL of Rs 410 crore and HPCL of Rs 100 crore,” said an http://www.hindustantimes.com/Images/Popup/2012/5/22_05_12-buss25b.jpginternal note of the petroleum ministry.

However, with a petrol price hike of Rs 4-5 a litre likely spmetimes next week, oil companies are likely to recover around Rs 3,000 crore out of the Rs 4,853 -crore losses on petrol, said a senior ministry official. The final compensation will be decided by the finance ministry after the petrol price hike is implemented. “It is likely to be around Rs 38,000-39,000 crore,” he added.

 

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