IndianOil wants to get crude on credit

The delay in government compensation for the regulated sale of fuels has prompted the country’s largest oil marketer Indian Oil Corporation to seek crude oil from Oil and Natural Gas Corporation and Oil India Ltd on credit. The leeway is being sought for as long as the government does not transfer subsidy.

The government-owned company has an unmet loss of nearly Rs 15,000 crore. After enjoying a discount of about 33 per cent from ONGC and OIL, IndianOil’s monthly bill on crude purchases from these two companies is around Rs 1,267 crore and Rs 417 crore, respectively.

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