UPDATE 1-India's HPCL says to buy 1.2 mln T fuel in 2009/10
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NEW DELHI, June 2 (Reuters) - India's Hindustan Petroleum Corp Ltd (HPCL.BO) sees a shortfall of 1.2 million tonnes of petrol, diesel and kerosene in 2009/10, and plans to either import or buy from Reliance Industries (RELI.BO), a top official said.
HPCL's director for marketing, S. Roy Choudhury, said the company had bought diesel and petrol from Reliance last month and may resume purchases.
"Next month again we'll give a requisition to them. This month they could not give us because of export commitments... We will either import or buy from Reliance," he said.
The company's retail network sells more petrol and diesel than what is produced at its refineries in Mumbai and Visakhapatnam.
HPCL saw exports, mostly naphtha and fuel oil, flat at 1.5 million tonnes in 2009/10 (April/March), Bhaswar Mukherjee, director for finance, told reporters after announcing March quarter net profit had jumped to 51.04 billion rupees ($1.08 billion) from 3.85 billion a year ago.
Half the profit came from lump sum subsidy payments from the government to compensate the state-run firm, which was forced to sell fuel at a loss when crude oil peaked last year.
HPCL was also considering buying up to 1 million tonnes of crude oil from Cairn Energy (CNE.L) (CAIL.BO), but the two companies had not agreed on the price, Chairman Arun Balakrishnan said. (Reporting by C.J. Kuncheria; Additional reporting by Ami Shah in Mumbai; Editing by Himangshu Watts)
