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• Goyal said that the excise duty cut on petrol will be positive for the company if at all it is implemented.Indian Oil Corporation, the biggest company by revenue, has witnessed borrowing surge to Rs 85,000 crore till date. PK Goyal, director (finance) at IOC told NDTV Profit that the company is hoping to get about Rs 16,500 crore out of Rs 30,000 crore, which has been passed in the supplementary budget for fuel subsidies.State-owned oil marketing companies like IOC have to sell diesel, kerosene at a price lower than the market rate. The government provides compensation later.The government is considering an excise duty cut on petrol and is also look at imposing an extra tax on diesel-powered cars at the same time. If the excise duty cut on petrol is implemented, it is likely to discourage utilization of subsidised diesel for personal cars.Goyal said that the excise duty cut on petrol will be positive for the company if at all it is implemented.
• Q: Oil companies have decided to stop the change in petrol prices due to rupee gains, but the rupee is again inching higher. What is the status right now on losses on petrol?
• A: We are reviewing the position on a daily basis and decision will be taken on appropriate time.
• Q: How much are the under-recoveries right now and how much do you project for full year if crude and rupee stay at current levels?
• A: The present recovery is Rs 11.50 paise on High Speed Diesel (HSD) and LPG is Rs 2.80 per cylinder. So the oil under recovery is 4.21 per day. The total under recovery will be Rs 1 lakh 35 thousand crore.
• Q: Reports suggest that there might be excise duty cut on petrol and there might be a duty on diesel. What do you think?
• A: We have not heard anything about it, but it will be a positive move if it happens.
• Q: You've not received the full compensation so far, any talks or intimation with the government for losses in the first half, also now for the under- recoveries in third quarter?
• A: We are talking with the ministry of petroleum and natural gas for giving us 100 per cent compensation and the matter is under review by them.
• Q: What’s the status of your borrowings as on date?
• A: Borrowing till today stands at Rs 85,000 crore, which was at Rs 64,000 crore till September 30. We are hoping to get about Rs 16,500 crore out of Rs 30,000 crore, which has been passed in the supplementary budget.
• Q: Gross Refinery Margin (GRM) is a big concern for refiners right now. Last quarter, IOC reported negative GRMs for the first time in history. What’s the status, have the GRMs deteriorated further?
• A: No we will be having a margin of around USD 3 if there are no inventory losses as on December 31.
• Q: There are reports suggesting that Indian oil companies are thinking of replacing Iranian oil firms due to payment mechanism. Can you update us with the situation? From where all would you be getting this crude then?
• A: We are not facing such issues. We have a term contract with the national Iranian company for 1.5mn tonne.
• Q: These whole phase that airline firms are going through, what’s the status on that? Are you getting the payments from Kingfisher Airlines in specific and other airlines?
• A: We are not because we are giving three months credit to Air India as advised by the finance and petroleum ministries. We have no such dealing with Kingfisher Airlines as on today.
• Q: How is the demand for products right now?
• A: Diesel growth is more than 7 per cent and petrol demand is more than 4 per cent.
• Q: What about demand for petrochemicals?
• A: The demand is good but margins are somewhat under pressure.

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