REFILE-IOC seeks reimbursement of petrol under recoveries

Fri Mar 23, 2012 11:21am IST

Stocks

   

(Refiles to correct spelling of Butola in first and fourth paragraph)

NEW DELHI, March 23 (Reuters) - State-run Indian Oil Corp has asked the government to reimburse 20 billion rupees ($390.8 million) of under recoveries for petrol sales for the current financial year ending March, Chairman R.S. Butola said on Friday.

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

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." ($1 = 51.1750 rupees) (Reporting by Prashant Mehra; Editing by Subhadip Sircar)

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