Commercial release of lube oil in August

COIMBATORE: Commercial production of lube oil from public sector Bharat Petroleum Corporation Ltd would begin from August at its Mumbai plant, a senior company executive said on Monday.

The test trial of the high quality lube oil has already started three months ago and would be ready for release for commercial sale in August, S Radhakrishnan, director (marketing), BPCL, told reporters.

The company, with an annual production capacity of 1.80 lakh tonne lube, has aimed at supplying 50 per cent of its production to domestic market and the remaining to the international market, as there was shortage in both these markets, he said.

On expansion plans, Radhakrishnan, who was here to distribute prizes to the winners of its 'mega promotion campaign,' said that a refinery in Bina in Madhya Pradesh would become operational in December 2009.

With an initial investment of rs.5000 crore and six million tonne capacity, the company is in dialogue with some foreign partners, to make the plant a joint venture, Radhakrishnan said.

The company would put an auto LPG dispensing station in Coimbatore within three months, for which suitable site is being identified.

There was no shortage of LPG and the problems could be at a few agency levels, Radhakrishnan said adding BPCL was monitoring constantly on the diversion of domestic cylinders for commercial purpose.

On increasing the prices of petroleum products, he said the oil companies were expecting to hear 'some good news' from the Cabinet in a couple of days.