Indian Oil PSUs feel the heat

Soaring crude prices and heavily subsidised petrol, diesel, LPG and kerosene in local markets are painting balance sheets of Indian Oil PSUs red. With borrowings rising at alarming levels, their investment and expansion plans may soon find a place in cold storage.

Rising food prices around the world are casting a shadow over bio-fuel futures, and have once again shifted the spot light on fossil fuels. On the other hand, being the election year in India, incumbent Government will have little or no will to pass on some of their burden to already disgruntled lot.

So, a double whammy for the oil export hub there. 2008 is a crucial year for its future.