New Delhi: Public sector Indian Oil Corporation will sell bonds worth Rs2,000 crore this month to tide over a financial crunch due to non-revision of fuel prices, its chairman Sarthak Behuria said on Thursday.
“The company was losing Rs165 crore per day on sale of petrol, diesel, LPG and kerosene, and was facing a shortfall in working capital fund,” Behuria said here.
Crude oil prices touched $100 a barrel mark on Wednesday evening in New York, triggering a possible government response to reduce the under-recoveries by public sector oil firms.
Indian Oil, Bharat Petroleum and Hindustan Petroleum are projected to lose Rs69,753 crore on fuel sale as the government has not allowed them to raise prices in line with the price of imported crude.
The company’s borrowings, which stood Rs27,000 crore on 30 September 2007 have risen to over Rs29,000 crore as it borrowed money to meet the working capital requirement in the absence of remunerative fuel prices.