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October 29, 2008 16:36 IST
Indian Oil [Get Quote], Bharat Petroleum and Hindustan Petroleum are likely to get oil bonds worth Rs 65,942 crore (Rs 659.42 billion) this week to make up for half of their revenue loss on fuel sale during the first nine months of 2008.
"Parliament has already approved (issue of oil bonds)....We expect finance ministry to intimate of the bonds anytime now," said petroleum ministry additional secretary S Sundareshan on Wednesday.
BPCL [Get Quote] is to announce on Thursday its earnings in July-September quarter, while HPCL [Get Quote] and IOC are to do so on Friday. Without the oil bonds, the three would post huge losses.
"Even with oil bonds, things are not going to be any better," he said.
The three firms would get Rs 14,956.17 crore (Rs 149.56 billion) worth of oil bonds for selling petrol, diesel, domestic LPG and kerosene below cost in January-March quarter.
They will get an additional Rs 24,408 crore (Rs 244.08 billion) compensation for April-June quarter and the remaining will be for July-September quarter.
Government compensates half of the losses resulting from its dictate to oil companies to not to raise fuel prices in line with cost, through issue of oil bonds.
For 2007-08, the oil companies reported a total revenue loss of Rs 70,579 crore (Rs 705.79 billion) of which Rs 35,289.50 crore (Rs 352.89 billion) is to be compensated through oil bonds.
The government has already issued, oil bonds worth Rs 20,333.33 crore (Rs 203.33 billion) for April-December 2007 period.
IOC, BPCL and HPCL in April-September lost Rs 92,853 crore (Rs 928.53 billion) on fuel sales (audited figures) and are projected to lose Rs 1,47,486 crore (Rs 1,474.86 billion) in the full fiscal.
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