Bharat Petroleum Corp expects petrol prices to go up from June 1 due to depreciation in rupee against dollar and also as petrol prices have moved up in international market, chairman and managing director RK Singh told CNBC-TV18 in an interview.
"There is a case for increasing the petrol price because the rupee-dollar exchange rate has changed. Rupee has depreciated significantly, it has breached Rs 56 now," Singh said.
State-run oil marketing company's fourth quarter net profit nearly trebled to Rs 4797.3 crore from Rs 1648 crore in the preceding quarter. Its revenues marginally grew by 6 percent from Rs 62340 crore in third quarter to Rs 66310 crore.
Singh said that improved gross refining margins mainly pushed its profitability. "GRM have moved from 2.1 percent last year to 4.97 percent in 12-13," Singh said.
Below is the verbatim transcript of the Singh's interview
Q: Let me talk to you first about your FY13 numbers. Your profit after tax (PAT) has almost doubled to Rs 2,643 crore. Your GRM is just a tad below USD 5 a barrel, almost being doubled over there as well. Take us through the highlights of FY13 and would you say that your PAT and bottom-line has got a boost because of the higher GRMs?
A: Yes, because GRM as you rightly said have moved from 2.1 percent last year to 4.97 percent in 12-13. So that has been the major contributor to our bottom-line.
Q: So, GRM is one factor, one would also expect that since the government has taken a lot of steps whether it is partial deregulation of diesel, petrol perhaps being more aligned this fiscal with the market rates than the one in FY12, action on LPG etc. Has all of that also impacted your bottom-line and top-line?
A: In the first six months of 2012-13 our total loss on petrol was Rs 700 crore that was reduced to about Rs 300 crore by the time year ended. So, yes, petrol price and capping of cylinders and diesel increase by 50 paise per month, all this have played a role in boosting our profit. But as I said major role is that of refineries.
Q: How much have you got from the government for compensation for subsidies in FY13. Also, we are on May 29, two days left for this fortnight to end. Can we expect petrol prices to change on June 1?
A: The under recovery for the 2012-2013 on industry basis was Rs 1.61 crore. Rs 60,000 crore have come from upstream and Rs 1 lakh crore from the government. Our under recovery was Rs 38,800 crore and we have got almost the entire under recovery compensated. Rs 1000 crore has been absorbed by the oil companies. Our share of absorption was Rs 249 crore. So, we haven’t got compensation to the extent of Rs 249 crore, otherwise everything has come.
Q: Will the price of petrol go up on June 1?
A: I think so. You will come to know on June 1 but don't ask me how much and what date. There is a case for increasing the petrol price because the rupee-dollar exchange rate has changed. Rupee has depreciated significantly; it has breached Rs 56 now. Our petrol price itself in the international market has moved up. So, all this makes a case for increasing the petrol price.