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 internal 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.