Our cash requirements are increasing as the oil prices go up: Ashok Sinha

ET Now talks to Ashok Sinha, CMD, BPCL, for his comments on the expected petrol hike.

What in your estimation is going to happen post the meetings currently happening between the PM and the FM? Do you feel we may see some action coming out of it this time?

I think these meetings are going on more to discuss the issue of compensation. I think all that is known is already on the table. It is basically when we get our compensations and in what form.

But do you think that you will be given oil bonds or there could be a price hike allowed on petrol?

These are the decisions to be taken between the finance ministry and petroleum ministry. Fundamentally, our position is that our compensation for the under recovery should be made. Now, the form, how, where and what will get decided, I do not think I can take a position on that.

How dire is the situation right now? We hear that oil marketing companies are struggling with cash flow requirements. What is your liquidity position right now? How far can you survive before the government comes in either with bonds or with cash?

Currently, our debt position is about 21,000 crores and, as you know, oil prices have also been moving up. And as they move up, our requirements for cash continues to increase, but there is no date as such for us to say we can survive before the government rallies help.