The Chairman of IndianOil Corporation Ltd, Mr R.S. Butola, today said that the global oil price volatility is being closely monitored as it would be difficult to sustain the current sale price in the domestic market.
“The OMCs have underpaid bills of Rs. 33,000 crore in the December quarter alone and this is a cause for concern. The total amount for the year is about Rs. 1,40,000 crore. We believe that the volatility will continue and we cannot just keep watching the situation,” he said.
Speaking to media after the launch of its healthcare CSR initiative, about 45 km from Hyderabad, Mr. Butola said the average price of oil/ barrel was about $85 during 2010-2011 and this has gone up to $110 during the current financial year. This shows the prices are up by about $25 per barrel during the year, needing close monitoring and follow up action.
“While the consumption of diesel has gone up, that of petrol has come down. If the growth in consumption of petrol was about 9-10 per cent last year, it is just about five per cent this year. Any backlog in payment of dues to oil companies will impact their long-term business plans,” he said.
The company's expansion is underway and the refining capacity is set to go up from 65.7 mt to 80 mt by 2013.
CSR PROJECT
The Union Minister for Petroleum and Natural Gas, Mr S. Jaipal Reddy, today inaugurated a unique Corporate Social Responsibility Project of IOCL at the village located close to the Hyderabad international airport.
The project named Sachal Swasthya Seva, IOCL's rural mobile health scheme seeks to take health care to the doorstep of rural households. The company has deployed a network of mobile medical units (MMUs) which are stationed at Kisan Seva Kendra Units. These MMUs will tour districts and offer healthcare near their homes.
The project launched here in Andhra Pradesh will cover 10 districts.
This will become a pan-India project covering various parts of the country. We hope to invest about Rs. 150 crore over the next three years, he said.