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[Kizen]

The world markets and companies are fluctuating with the changes in oil prices. OPEC members are trying to moderate production and demand. But none of these facts are going to affect the oil prices in the Indian markets. Indian oil corp. had end up this quarter with $211 million loss. Hindustan Petroleum (4.31 billion rupees) and Bharath Petroleum (3.48 billion rupees) also were in the losses in this year. The oil companies shares were fell below 6 percent in these 9 months in India.
The Indian government did not allow the companies to raise the oil price when it’s reaching high in global markets. Crude oil went up to a record high $78.40 a barrel in July but this increase could not affect the Indian customers.
The government limited the fuel price increase to 15 percent last year when crude oil costs rose 40 percent but the government providing subsidies to encourage the state-owned refineries and it’s compensating with bonds worth 280 billion rupees to help them. State-owned refiners have been allowed to raise fuel prices by about 7 percent since Jan.
The Indian Government is trying to expand its economic growth and its following some policies to protect economy as well as inflation. But the oil companies are becoming more uncertain with these policies. These are moving from profits to losses irrespective of the price changes in the markets.
The Prime Minister Manmohan Singh to control the inflation, he is not imposing any burden on the poor. The government is giving big hand to privatization, FII’s and Foreign Direct Investments. On the way to growth of the Indian Economy the oil companies are passing through the barriers.



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[patanx]

High crude prices may be fattening profits at oil companies around the world, but in India state-controlled refiners and retailers are losing money hand over fist. In the fiscal year that ended in March 2006, those companies lost a combined $8.6 billion. The estimates say they will lose another $12 billion to $20 billion this year.
The reason: government price controls on gasoline, diesel and cooking fuels.
"Today we are selling gasoline at 8 cents a liter below cost, diesel at 17 cents a liter below cost and kerosene at 39 cents a liter below cost, to retail customers." N. Srikumar, a spokesman for Indian Oil, the country's largest refiner, which reported its first quarterly loss, on revenues of $41 billion, last year.
Bharat Petroleum, also posted its first loss, of $145 million, in the quarter ended in June. Hindustan Petroleum had a loss for the quarter of $130 million.
"Kerosene used by poor families in India for cooking and lighting is sold at less than the price of packaged drinking water." Says Sudhir Joshi, finance director at Bharat Petroleum