‘Indian oil firms no longer in healthy state’

Petroleum Minister Mani Shankar Aiyar on Tuesday said oil companies had incurred losses of Rs 12.27 billion ($282 million) in the first quarter of 2005-06 fiscal due to the freeze in retail prices despite rising global prices.

“I would be failing in my duty if I were not to draw the attention of the House to the humongous under-recoveries and even losses, under which our navratnas/mini-ratna oil marketing companies are reeling,” Aiyar said in Rajya Sabha in a statement on the oil scenario.

With the Left resisting any revision in retail prices of petroleum products, including petrol, diesel, kerosene and cooking gas, Aiyar stressed that India’s oil companies, which are the biggest contributors to the central kitty, are no longer in a healthy state.

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“The new and very disturbing trend is that our navratna and mini-ratna oil marketing companies are beginning to suffer net or cash losses, seriously incapacitating their abilities to meet capital expenditure targets or maintain dividends on equity.”

Hindustan Times