Coal India's fuel cost to rise 30%in FY23
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Coal India Ltd's fuel cost is likely to rise by around 30% in the financial year starting in April following an increase in bulk diesel prices by 25 rupees per Itr by state-owned oil marketing companies.
Coal India consumes around 400,000 kl of diesel annually at a cost of over 35 bin rupees, including taxes, company officials said.
An increase of 25 rupees per ltr in bulk diesel prices would roughly inflate the company's total diesel bill by over 10 bln rupees to over 45 bln rupees annually, sources said.
Fuel cost accounts for around 5% of the total annual expenses of the world's largest coal producer.
The company has over 2,500 dumpers operating in its opencast coal mines which account for about 75% of its total diesel consumption. The rest of the consumption is related to power generators and operating other mining equipment.
In 2020-21 (Apr-Mar), the Maharatna company's fuel cost was 25.38 bln rupees, excluding taxes. In the first three quarters of the current financial year, the company spent a little over 20 bin rupees on power and diesel purchases, excluding taxes.
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