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Bharat Petroleum posts net loss for second quarter

India’s Bharat Petroleum posted a Rs32.29 billion (US$620.7 million) net loss for the second quarter, compared with a profit of Rs21.42 billion (US$411.7 million) a year earlier. The losses incurred were due mainly to selling fuel products at state-mandated prices and the absence of subsidies from the government during the period. The three state-run companies, Bharat Petroleum Corp., Hindustan Petroleum Corp. and Indian Oil Corp. are required to sell automotive and cooking fuels at government-set prices to curb inflation. The prices are usually below the normal market rates and result in revenue losses or under-recoveries, which the government compensates for through a cash subsidy. The company holds a 61.65% stake in the Numaligarh refinery located in the north-eastern state of Assam. Its joint venture with Oman Oil Co. has a 120,000-barrel-a-day facility in Bina, central India. (October 31, 2011)