And the pumps run dry ...

If Indian Oil chairman RS Butola is to be believed, and you only have to look at his balance sheet to know he’s telling the truth, fuel pumps across the country may start running dry as early as next month. Announcing IOC’s worst-ever performance, Butola said banks may not lend him money to buy crude oil—borrowings have surged to R73,296 crore thanks to a net Q2 loss of R7,486 crore due to the government not able to compensate for its losses of R11,757 crore by selling diesel/kerosene/LPG below cost. Nor is IOC the only PSU oil marketing companies (OMCs) to be making losses—HPCL and BPCL’s combined losses were R6,500 crore for the quarter.

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