IOC Secures $500 Million Funding Amid Rising Crude Prices

The Indian Oil Company (IOC) has secured $500 million in funding through an External Commercial Borrowing (ECB) loan from the Reserve Bank of India. This discounted forex facility allows IOC to repay the foreign loan over five years, with repayment values subject to fluctuations in the rupee's value against the dollar.

This loan is part of a larger trend where OMCs are absorbing rising costs without increasing retail fuel prices. In fact, BPCL has already indicated that it may resort to raising retail fuel prices due to strained financials resulting from crude price increases.

However, IOC Chairman Arvinder Singh Sahney stated that the company's crude supply is secured and that they have enough supply for the next 45-50 days. The company plans to source crude from Saudi Arabia via a longer route around Africa.