Regarding the cabinet decision to introduce a tax of Rs. 9.00, still no communication received on the imposition or implementation of the said tax. If it is to be implemented it has to be published by gazette with the implementation date. Implication will come to effect only from the date of the implementation of the gazette. The same kind of Tax Introduction done by the Government 3 or 4 months back also. With the increase of Tax, LIOC increased their selling price by Rs. 2.00. But with the reduction of the crude price, they reduced the increased sale price of RS. 2.00. I hope this time also they follow the same thing. If tax increase reduces their margin, definitely they will increase selling price. And also we want to look at on the import cost side also. World crude price is coming down while OPEC is trying to increase the Crude price. The current level of Crude excess supply in world market will bring down the crude price further and same will continue for number of years. Due to increase production volume in the world market the excess storage of crude will continue for number of years. With the low crude price, definitely LIOC will maintain good margin.
On the other hand Government has given number of commitments to IMF while taking USD 1.5 Bn loan to run the state commercial entities profitably. So they can’t increase taxes by just looking at the LIOC side. They have to look on the CPC profitability side also. So I think there will not be any impact to LIOC profitability. They will report good profits for the coming years as they did for last two quarters. GL.