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IOC net dips 71 %

NEW DELHI: Citing huge losses in the shape of Rs. 330 per cylinder subsidy as the major reason, Indian Oil Corporation on Wednesday acknowledged that it had “imposed restrictions” on the release of new LPG connections in both urban and rural areas leading to return of the “waiting list” phenomenon for lakhs of consumers.

“The LPG bookings have been slowed down and the deposit for making new bookings has been raised to Rs. 1,250 per connection. This is a cautious effort to reduce the huge losses faced by the company in the sale of LPG cylinders and the costs incurred on importing the product. This has also increased the waiting list for new connections,” IOC Chairman and Managing Director, Sarthak Behuria, told newsmen during a media interaction to announce the first quarter results. Stating that the company’s profits had dipped by 71 per cent during the first quarter, Mr. Behuria said the net profit was Rs. 415.13 crore as losses mount on fuel sales against Rs. 1,468.41 crore recorded in the same period of the previous year.

Further he said IOC had recommended to the Chaturvedi Committee constituted by the Prime Minister, Manmohan Singh, to have separate tariffs for transport fuel, industrial fuel and that for general consumers. Borrowing of the company had gone up to Rs. 42,000 crore and in the present circumstances was expected to touch Rs. 58,000 crore by September.

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