Coimbatore (Tamil Nadu), Sep 25 (IANS): State-run Indian Oil Corp said on Friday it will invest Rs.150,000 crore, including Rs.50,000 crore for expanding its existing brownfield refineries, in the next five to seven years.

Chairman B.Ashok told reporters here that the capacity of the company refinery in Gujarat will be increased to 18 million tonnes from the present 13.7 mt, at Mathura to eight million tonnes, at Panipat to 20 mt from the present 15 mt, and at Barauni to nine million tonnes from the present 6 mt.

He also said the new refinery at Paradip in Odisha, with a capacity of 11 mt, will commence operation by November, which would lead to Indian Oil refineries holding over 35 percent share of the national refining capacity and more than 50 percent market share in petroleum products retail.

Regarding falling global oil prices, he said several fixed cost elements such as transportation and refining restrict oil marketing companies (OMCs) passing on the entire benefit of lower price to consumers.

"Crude rate is one part of the fluctuating prices of petrol in International market. There are other fixed elements, like transportation and the process of reform and refine, rates of which are not coming down, adding to end product prices," he said.

Regarding automobile preferences, Ashok said: "Growth of petrol sales is robust and is in double digit and the balance is still tilting towards petrol. So I hope the petrol will continue to get the same patronage."