IOC aska govt to reimburse Rs 2,000 cr of petrol under recoveries

State-run Indian Oil Corp has asked the government to reimburse Rs 2,000 crore ($390.8 million) of under recoveries for petrol sales for the current financial year ending March, Chairman RS Butola said on Friday.

It will have to raise petrol prices if under recoveries are not reimbursed, he said at an industry event.

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India freed pricing of petrol in June 2010 but continues to subsidize prices of gasoil, kerosene and cooking gas to protect the poor from the impact of inflation pressures.

“We have told the government under recoveries are very high. This is beyond the ability of oil marketing companies to absorb,” Butola said.

“So we have asked for 100 percent reimbursement. If we are not given this, we will have to consider passing on the burden to consumers.

Reuters