PSU oil OMCs, Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation rose by 5.12% to 7.33%.US crude oil futures fell to a 1-1/2-year low below $60 a barrel on expectations for a drastic pullback in energy demand.Meanwhile, the Petroleum Secretary, R S Pandey said on Thursday (6 November 2008), the Government is not considering any fuel price cut at the moment as public sector. oil marketing companies are still incurring revenue loss on sale of various petroleum products.
While margins on sale of petrol have turned positive, but there were under-recoveries on sales of other products such as diesel, domestic LPG and kerosene. Besides, the rupee-dollar parity is also to be taken into account, he pointed out.
The public sector oil marketing companies — Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation — may reportedly lose Rs 1,28,135 crore on fuel sales during the current fiscal. The Indian crude basket hit its low of current fiscal on 28 October 2008 at $56.72 a barrel.
The basket on Wednesday, 5 November 2008 stood at $60.10, a barrel up from previous day’s $58.62. The basket for April till November 2008 has averaged $108.74 a barrel. The October 2008 average stood at $69.12 a barrel.
The Indian rupee weakened today as expectations of further foreign investor outflows from the stock market weighed on sentiment. It stood at 47.73/74 per dollar in opening deals, just 0.1% weaker than 47.66/69 at close on Thursday (6 November 2008). A weak rupee increases the cost of oil imports.
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