“Market to get competitive”, says Mr. Bansal
New Delhi   28-Jun-2010

Brij Mohan Bansal, Chairman and Director (Business Development) of country's largest oil marketing company (OMC) IndianOil (IOC), shares his views after government's decision to de-control petrol prices in a short interaction with Financial Chronicle:

Your comment as the IOC chairman:

This is a welcome step for the industry. The sector was suffering due to under-recoveries. There were problems of liquidity that led to lot of borrowing. Decontrol of petrol price will lead to a competitive market and improve the financial health of state-owned OMCs.

What do you think as a consumer?

As a consumer, the price hike will have some impact on my expenses initially. But looking in the long term, this will be positive for a consumer.

How often will IOC revise petrol prices?

We have not yet taken any decision. We were busy with other issues in the weekend. We will discuss different possible scenarios on Monday. Later, we will discuss them with the government and come to a conclusion.

How much every dollar increase in international crude price impact retail price of petrol?

Every dollar increase in international crude price will impact retail price by nearly 37 paise.

Is there any communication from the government regarding compensating under-recoveries in the first quarter of the current year?

No, we have not received any information. Actually, it is too early to discuss this.

How much is the average crude price in the first quarter till now?

Average crude price in the first quarter so far is nearly $75-76 per barrel.