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Old 25th July 2008, 08:13   #136
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IOC runs out of money, bonds to buy crude

This is not going to help the fuel situation.


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IOC runs out of money, bonds to buy crude

Sanjay Dutta | TNN



New Delhi: Oil’s relentless rally till the last fortnight combined with government lethargy in issuing bonds to make up losses on fuel sales have put IndianOil Corporation in a spot. The flagship refiner-marketer has run out of money as well as the Centre’s IOUs — which the company has been encashing for foreign exchange — to buy crude.
I n d i a n O i l needs roughly Rs 12,000 crore ($3 billion) every month for buying crude but loses Rs 413 crore daily on fuel sales. As a result, the company has been borrowing heavily from banks and incurring further expense on interest. Lately, it has also been encashing the bonds under an RBI mecahnism.
In June, IndianOil used up the last of the bonds it had to raise about Rs 9,900 crore through the RBI mechanism. It is now left with bonds worth about Rs 4,300 crore that had already been securitised for raising funds from the overnight call market. Indeed, IndianOil — as also HPCL and BPCL — has been running on borrowed money. “Our borrowing had reached Rs 42,000 crore in May. In June, it came down to Rs 35,000 crore but if another tranche of bonds does not come through quickly, the borrowings will rise again,” a top IndianOil executive said. The company board sometime back had cleared an enabling provision to raise the borrowing limit to Rs 80,000 crore.
The oil ministry has asked the finance ministry for over Rs 50,600 crore bonds to partially make up the losses during the first half of 2008 calendar. The ministry has sought Rs 14,956.17 crore bonds for the last quarter of 2007-08 and Rs 35,672.70 crore more for the first quarter of 2008-09. The total loss on fuels in 2007-08 has been put at Rs 70,579 crore.
Ironically, the situation has been created by none other than the government itself. The government refused to raise pump prices or reduce taxes periodically and let the losses pile up as oil kept climbing. Till last fortnight, the oilmarketers were losing Rs 16.70 on each litre of petrol, Rs 27.61 on diesel, Rs 38.09 on kerosene and Rs 338.53 on each cylinder of cooking gas. This is after the government raised pump prices on June 4 by Rs 5 a litre for petrol and Rs 2 a litre of diesel and Rs 20 per cooking gas cylinder. The government is expected to review the prices in October, but another round of price increase looks unlikely in an election year. If pump prices do not go up and crude remains in the $130 a barrel range, IndianOil reckons it will close the year with a Rs 121,015 crore loss.
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Old 25th July 2008, 08:27   #137
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Really unfortunate - after paying premium for diesel engine (over petrol engine - in the hope of getting cheaper fuel), now being forced by circumstances to pay premium for fuel also
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Originally Posted by dicorex4x4 View Post
No rationing at Shell BUT a litre of diesel is 65.95 :-) Tanked up at Shell Whitefield with ~50 litres
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He had to finally fill in at Shell where the diesel rate is around Rs.62 per litre
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Had tough time sourcing diesel for my new Palio 1.3 MJD,now its tanked up Petrol cars are the happy ones with no problem in getting the expensive fluid.
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Old 25th July 2008, 10:30   #138
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I was supposed to take my car from Chennai to Bangalore, good in hindsight that I decided to go and come back by train, even though I did not see any problems for petrol, the shortage was for Diesel. Even during the time of shortage paying close to Rs65/- for a litre of Diesel would be paying through the nose ears and everything.
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Old 25th July 2008, 14:43   #139
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What's the situation now in Bangalore? Any updates?
amarprusty - which bunk did you tank up?

May I request members to update this thread on where fuel (today its diesel, tomorrow it may be petrol) is available, even with a queue?
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Old 27th July 2008, 12:07   #140
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No updates from Bangalore members? Diesel is freely available in Chennai - 37.13 for IOC XtraMile.
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Old 27th July 2008, 12:41   #141
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@dicor - things seem a little better, but fill where you can.
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Old 27th July 2008, 15:13   #142
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IOC Bunks

IOC Bunks have normal diesel stocks in the afternoon,go and fill your tanks.
Now it is rare to see normal petrol as well seems Petroleum Co and bunks want to sell the premuim ones faster and delay the plain petrol in the chaos prevailing over diesel availability.

HP bunks are worst hit no diesel to be seen since long time now,never go to them in Bangalore.

Best I suggest get the contact number of your nearby Fuel stations and call them now and then when they have fresh stock,go and tank up ur cars
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Old 27th July 2008, 20:23   #143
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Didn't want to take a chance after entering KA on my way to Bangalore. Tanked up at the BP Ghar outlet at Krishnagiri for a sweet 37.84 a litre for ordinary diesel. Its been ages since a bunk attendant asked me - ordinary or hi-speed diesel?
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Old 27th July 2008, 20:29   #144
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I still see No Diesel boards in some of the HP bunks in Bangalore. I dont remember seeing it in the IOC on my way.
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Old 27th July 2008, 21:50   #145
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Tried to fill in Hyderabad 27th morning near Lakdi-ka-pul. BPCL did not have diesel, HP was rationing upto 500/- per car. Had to talk my way to fill about 25lts.

On the way to Bangalore, saw trucks queueing up at different pumps at Gooty, Ananthapur etc., but fuel was available.

Could get upto 20lts diesel in Banaswadi in Bangalore.
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Old 28th July 2008, 13:52   #146
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There is a shortage of diesel in Coorg. Long waiting in petrol bunks
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Old 28th July 2008, 14:04   #147
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I believe this issue is over now. Or so TOI says.
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Old 28th July 2008, 14:46   #148
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Yesterday evening I filled my car (So to say) with diesel. I was rationed for Rs. 500 worth of diesel in an IOC pump in Kengeri.
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Old 28th July 2008, 15:12   #149
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Today was horrible. There was no stock of Diesel in about 7 pumps in Pune. Even COCO BP pump near RTO office did not have any diesel.

After driving around the city, I was lucky to find an HP pump near Ganeshkhind road, that had stock. I had to wait for about 25 minutes, before I finally could fill up.

Guys, when is this shortage going to end???

I am going to Kerala next week. I hope I will not face any issues with diesel shortage in the highway!!! Any inputs?
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Old 28th July 2008, 15:43   #150
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Originally Posted by Chevy_lover View Post

I am going to Kerala next week. I hope I will not face any issues with diesel shortage in the highway!!! Any inputs?

People going on a long trip. Beware. You may get stranded on the highway. Please take the train rather than driving. Just a suggestion but if you are a risk taker go ahead and drive.
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