There is no sign of decrease of oil price in the international market. Even the most optimistic analysis is not expecting any substantial cut in the oil price. Now, Indian Oil Corp. (IOC) is suffering huge losses as it has to sell oil to the people at a rate fixed by the Indian government and the rate is lower than it is buying oil form the international market. The loss is mounting and has become almost unbearable for the company. Sarthak Behuria, CMD of IOC has called on the government to increase the selling price of oil in the Indian market. He has stated that if IOC continues to suffer loss this way then in the current fiscal year the company may lose Rs 30,000 crore (nearly $6.65 billion).
Since September 2005, the Indian government has increased price of oil and the oil companies are repeated asking the government to act decisively in accordance to the market condition. Right now, elections are going on 5 states of (Tamil Nadu, Assam, Kerala, West Bengal and Pondicherry) and until the elections finish the government will not take any risk of increasing the price of oil.
So, IOC officials perhaps have no choice but to wait. Poor them! I feel sympathy for them. What about you?
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