Indian oil retailers risk cash crisis – source

NEW DELHI (Reuters) – State-run Indian oil retailers will run out of money to cover crude imports within a few months unless the government announces a rescue package soon, a senior oil ministry source said on Tuesday.

The firms are losing millions of dollars each day as they must sell their fuel at discounted rates set by the government far below oil’s surge to above $135 on the world market. They have appealed for price hikes and duty cuts.

On Tuesday, Taiwan joined Asian nations Indonesia and Sri Lanka in deciding to raise fuel prices as they can no longer afford to shield consumers from soaring crude oil prices.

“At this rate, Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL) can only pay for imports till end- July. Indian Oil (IOC) can only sustain till mid-September,” the official, who did not wish to be identified, told reporters.

Reuters