IndianOil, HP and BP likely to get Rs 9,080 crore bonds
New Delhi   29-Jan-2008
State-run IndianOil, Hindustan Petroleum and Bharat Petroleum are likely to get bonds worth Rs 9,080 crore bonds as part compensation for selling fuel below cost during the third quarter ended December 31, 2007. IndianOil is slated to get Rs 5,100 crore worth of oil bonds from the government, HPCL Rs 1,900 crore and BPCL Rs 2,080 crore, official sources said. Government had last week issued bonds worth Rs 11,256.92 crore to three PSU oil marketing companies to compensate them for under-recoveries on selling petrol, diesel, domestic LPG and PDS kerosene in April-September 2007 period. For April-September losses, IndianOil got Rs 6,362.25 crore worth of oil bonds, BPCL Rs 2,355.54 crore worth of 'bonds carrying coupon rate of 7.95 per cent and maturing in 2025. Sources said the third-quarter oil bonds have been calculated at the rate of 42.7 per cent of the total under-realisation on sale of the four fuels. One-third of the losses get compensated by way of discounts on crude oil from companies such as ONGC and the remaining of under-realisation are borne by the fuel retailers. For October-December quarter, the retailers got Rs 7,083 crore, from upstream firms and the remaining of the Rs 21,264.6 crore under-realisation on sale of petrol, diesel, LPG and kerosene was borne by IndianOil, BPCL and HPCL. The total under-realisation on sale of the four fuels during April-December has been pegged at Rs 47,628 crore, of which the government compensated Rs 20,336.92 crore through bonds. For the full fiscal the aggregate loss of IndianOil, BPCL and HPCL on fuel sales is being pegged at Rs 71,808 crore. They currently lose Rs 10.6 per litre on petrol, Rs 11.6 a litre on diesel, Rs 331.4 per litre on PDS kerosene. During April-September, oil bonds worth Rs 11,257 crore were issued to the oil companies and Rs 8,788 crore assistance was received from upstream companies like ONGC and OIL.