IOC eyes Rs 80,000 cr

Crude is priced at $35 per barrel in international market. However, it is difficult to sustain such high price for a long period. "The price is bound to fall," he said.

He said price correction for diesel, kerosene and liquified petroleum gas is a must. Otherwise, the oil pool deficit will go up considerably which the government can hardly afford.

He said the price for kerosene and diesel should be at par. When it was pointed out that there was a feeling in the political circles that if it is so done it would effect the poor people as kerosene which is priced lower is mostly consumed by them, he said, "the price of kerosene and diesel is same both in Bangladesh and Pakisatan."

He said IOC is determined to go ahead with the east coast refinery near Paradip in Orissa even after the exit of Kuwait Petroleum Co (KPC) from the project. "We are looking for a new partner. If not available we will do it alone," he said.

At present, the cost of the project is estimated at Rs 8,312 crore. However, IOC board is considering to increase its capacity from the present 9 million tonne per annum (mtpa) to 12 mtpa.

He said although KPC has withdrawn from the project, it has shown keen interest to continue its cooperation with IOC. It may supply crude for the east coast refinery, which will be off-loaded fron Suezmax vessels using single bouy mooring placed on the Orissa cost near Paradip. Moreover, KPC will be partnering with IOC and Oil & Natural Gas Corp to set up facilities at Kuwait, he said.