Hi, can any one explain how oil companies loose money, if they really lost money, they will definitely close the company instead of continuing these many years. I think they are not loosing money but they are not gaining as much as other country oil companies are gaining, please clarify
RE:how oil companies loose money? please clarify
by Seenu Subbu on Jun 10, 2008 01:25 AM Permalink
Subsidies. Actual cost per liter of oil should be about Rs.100 while the Govt subsidizes diesel and petrol prices. Public sector oil companies absorb these subsidies and write them off with their losses. You, the tax payer, lose again. Sardar, and his Gori Masterini, pilfer and win.
