Industry

Indian Oil Corporation posts ₹1,992.53 cr net loss in Q1 on petrol, diesel price freeze

A view of Indian Oil Corporation fuel filling station in Vijayawada. Photo used for representation purpose only.

A view of Indian Oil Corporation fuel filling station in Vijayawada. Photo used for representation purpose only. | Photo Credit: V. Raju

Indian Oil Corporation (IOC) on Friday reported a net loss of ₹1,992.53 crore for the June quarter because of a freeze on petrol, diesel and LPG prices despite rising input costs.

Net loss of ₹1,992.53 crore in April-June compared to ₹5,941.37 crore of net profit in the same period a year back, the company said in a stock exchange filing.

This is this quarterly loss in over two years. The company had in January-March 2020 reported a net loss because of inventory losses.

State-owned fuel retailers - IOC, Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) - did not change the prices of petrol and diesel during the quarter despite rates of crude oil (raw material for making fuel) climbing above $100 per barrel.

These losses negated record refining margins. IOC earned $31.81 on turning every barrel of crude oil into fuel at the refinery gate as opposed to a gross refining margin (GRM) of $6.58 per barrel in April-June 2021.

The core margin, after offsetting inventory losses, was $25.34 per barrel.

"However, the suppressed marketing margins of certain petroleum products have offset the benefit of an increase in GRM," the company said in notes to its accounts.


Our code of editorial values

  1. Comments will be moderated by The Hindu editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.

Printable version | Jul 29, 2022 4:37:23 pm | https://www.thehindu.com/business/Industry/ioc-posts-199253-cr-net-loss-in-q1-on-petrol-diesel-price-freeze/article65698105.ece