IndianOil ready to sell petrol, diesel to Pakistan
New Delhi   26-Apr-2011


Mr. R. S. Butola, Chairman, IndianOil

IndianOil (IOC) may consider selling petroleum products to Pakistan if an import ban by that country on these products is lifted.

IOC's Director Refineries, Mr B.N. Bankapur, said, “If the restriction goes, we are ready to supply diesel as well as petrol to Pakistan... it's an opportunity and a market for us.”

Panipat expansion

The company could look at expanding its 15-million-tonne-a-year or 300,000 barrels-a-day Panipat refinery if there is an opportunity to sell products to Pakistan, Mr Bankapur added. Indian companies have been pressing Pakistan since 2005 to lift the ban.

Speaking to media persons in an informal interaction along with his board members, Mr R.S. Butola, Chairman, IOC, said that it was a conscious decision on part of the domestic oil marketing companies not to revise rates of petrol despite high volatility in international crude oil prices.

While declining to be drawn into any debate on the issue that it was political compulsions which were stopping the companies from increasing petrol prices even though it is deregulated, he said, “We live in an environment. If we take certain action, the environment is going to turn against us."

However, he said, “We would like to do it at the earliest possible.”

In June last year the Government had allowed PSU oil companies to fix the price of petrol but continued to control the prices of diesel, PDS kerosene and cooking gas with a view to control inflation.

Growing debt

Unchanged fuel prices are also resulting in IOC's debt growing at Rs 5,000-6,000 crore every month. Its debt stood at about Rs 53,000 crore at the end of March. The retail selling price of petrol is benchmarked at $ 100 a barrel.

On the company's way forward, Mr Butola said, to continue to be strong at the home turf is the main focus. The company also plans to enter the power business. “Definitely we have the desire...we are willing to trade power. The company has the feed stock and its own captive power plants,” he added.