Losses From Hedging: STC Could Absorb Remaining Rs 575 Million
The State Trading Corporation (STC) could absorb in its accounts the balance of Rs 575 million losses arising on hedging.
This will help to mitigate, to some extent, any possible increase in the price of gasoline and diesel in the local market. STC expects the government's decision.
Currently due to the hedging loss, consumers are asked to pay the price. They contribute Rs 1.25 per liter on petrol and Rs 1 per liter on diesel. A decision which was the subject of much criticism from the opposition political parties and consumer associations.
STC hopes to finish with this hedging loss by November 2013. This loss on hedging exercise undertaken in 2008 amounted to Rs 4.7 billion.
