IndianOil says oil import costs may climb 70% this year
New Delhi   01-Oct-2008
The nation's biggest refiner, IndianOil, said its oil import costs might climb as much as 70% to $45 billion this year, adding to increased borrowings and revenue losses from selling fuel below cost. The New Delhi-based refiner is paying $110-115 for every barrel of oil it buys from overseas, compared with an average of $79 a barrel in the year that ended in March, Serangulam V. Narasimhan, director of finance, said in a telephone interview on Tuesday. "Internal resources are not adequate because of pricing controls," Narasimhan said. "Borrowing is by default. We have $3 billion of foreign-currency borrowings in short-term loans of about six months to a year." IndianOil controls about 40% of refining capacity in India and expects average crude oil prices at $90-100 a barrel by March 2009.