Thursday, May 26 2005 21:29 Hrs (IST) - World Time -

New Delhi: Public sector oil marketing firms made a net cash loss of Rs 1424 crore in March and April due to the freeze on petrol, diesel, LPG and Kerosene prices despite rising cost of raw material (crude oil).

Indian Oil Corp, Bharat Petroleum, Hindustan Petroleum and IBP made a cash loss (loss before interest, depreciation and taxes) of Rs 341 crore in March and Rs 1083 crore in April, the Prime Minister Manmohan Singh was informed today (May 26, 2005).

Officials said Petroleum Minister Mani Shankar Aiyar made out a case for raising petrol price by Rs 2.50 per litre and diesel by Rs 1.30 per litre, the hike being on account of rise in tax rates. Together with the impact of spurt in crude prices, the hike in petrol needed was Rs 2.87 a litre and Rs 3.73 per litre on diesel.

During April, IOC posted a cash loss of Rs 223 crore, IBP Rs 160 crore, HPC Rs 394 crore and BPC Rs 306 crore. In April 2004, IOC had made a cash profit of Rs 469 crore, IBP Rs 9 crore, HPC Rs 85 crore and BPC Rs 60 crore.

In March this year (2005), IOC reported Rs 79 crore cash loss (Rs 481 crore cash profit in same month last year), IBP Rs 55 crore (Rs 50 crore cash profit last year), HPC Rs 43 crore (Rs 305 crore cash profit last year) and BPC Rs 164 crore (Rs 112 crore cash profit last year).

The over 100 minute meeting, which was also attended by Finance Minister P Chidambaram, Defence Minister Pranab Mukherjee and officials of Planning Commission, remained inconclusive as Petroleum Ministry was asked to rework the proposal keeping in mind the cash loss and future investment requirements.