 "Oil firms may lose Rs 72K cr in 2012: Jaipal Reddy")
Union Minister of Petroleum and Natural Gas Jaipal Reddy today said that oil firms are likely to face a staggering loss of Rs 72,000 crore this year in the event of quick depreciation of the rupee.
“When the rupee depreciates by Re 1, the oil companies lose Rs 8,000,” Reddy told English news channel Times Now.
The minister stressed on the immediate need to act on the situation.
“Something needs to be done. We need to have a political consensus on what steps can be taken to provide cushion to the oil firms,” Reddy said.
“Last year, the rupee was 46 per dollar, today it has breached 55,” a worried minister said.
Reacting to the possibility of petrol price hike, BJP’s Rajeev Pratap Rudy said,“The EMIs are high, inflation is up and the government has no right to mismanage household economy. Raising the the petrol would be a disaster.”
Rudy said,“The government earlier announced that the economy would progress 9 percent but then they scaled it down to 6.7 percent. The government has mismanged the economy and I have no idea how it plans to handle it.”
Significantly, UPA 2 celebrates three years in office today.
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