New Delhi: The common man reeling under the escalating fuel prices may receive another blow to their weary pocket as depressed on its biggest loss of Rs 7,485 crore, the Indian Oil Corporation (IOC) has warned of raising fuel prices on November 16, if the government does not bear its financial losses.

The IOC has also refused to roll back the 50 paise hike in fuel prices. Actually, the politics on the petroleum prices has taken a toll on the oil companies which are forced to incur huge losses.

The company had earned a profit of Rs 5293.95 crore in July-September, 2010 but the recent loss has sent tremors within the organization.

IOC Chairman RS Butola said, “We have never witnessed such a situation. While the government has freed pricing of petrol, it continues to fix rates of diesel, domestic LPG and kerosene. In spite of this, the government has not taken any initiative in meeting our losses.”

Butola said since nine days, IOC is losing Rs 4 lakh per day. With rupee becoming stronger, we thought of cutting price of petrol by 50 paise but in vain.

He added, "If the situation persists, it will be difficult for us to make petroleum products. We may have to shut down our refineries as we will not have enough money to import crude Oil. We are already having trouble in getting loans while the rest of the agony is being compounded by the unstable rupee.”

It is to be noted, the company is losing Rs 8.78 per litre on diesel, Rs 260 per cylinder on LPG and Rs 27 per litre on kerosene. He said, if the government would have fulfilled its promise of paying Rs 15,000 crores, the company could have been saved from such a massive loss.