Indian Oil Corporation (IOC) has sold petrol at a loss of Rs 10 per liter in the April-June quarter of the current financial year. Apart from this, the company has suffered a loss of Rs 14 per liter on the sale of diesel.
Indian Oil Corporation (IOC) has sold petrol at a loss of Rs 10 per liter in the April-June quarter of the current financial year.
Indian Oil Corporation (IOC) in the April-June quarter of the current financial year petrol Sold at a loss of Rs 10 per litre. Apart from this, the company has suffered a loss of Rs 14 per liter on the sale of diesel. This is the reason why the company has suffered a loss in a quarter for the first time in two and a half years. The country’s largest oil refining and fuel retailer has reported a net loss of Rs 1,992.53 crore in the first quarter of the current financial year 2022-23.
Profit was made in the same quarter of last year
With this, the company had earned a net profit of Rs 5,941.37 crore in the same quarter of the previous financial year. At the same time, in the previous ie January-March quarter, the company had a net profit of Rs 6,021.9 crore.
IOC’s single income before tax, interest, depreciation and amortization (EBITDA) declined 88 per cent to Rs 1,358.9 crore on a year-on-year basis. At the same time, the company has a net loss of Rs 1,992.5 crore. However, during the quarter, the company’s gross refining margin (GRM) has been at an all-time high i.e. $31.8 per barrel.
Loss of income due to sharp drop in margins
The report by ICICI Securities said that the main reason for the decline in the company’s earnings is a sharp decline in margins on retail sales of petrol and diesel. It said that the company has incurred a loss of Rs 10 per liter on petrol and Rs 14 on diesel. Apart from this, due to reduction in excise duty, the company has also suffered a loss of Rs 1,500 to 1,600 crore on storage.
The report said that petroleum companies revise petrol and diesel prices every day according to the cost. But Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) along with IOC have not increased the prices of vehicle fuels despite the increase in cost.
At present, India’s crude oil imports are sitting on an average of $ 109 per barrel. It has been said in the report that vehicle fuel prices at petrol pumps in the country have been fixed according to the price of 85 to 86 dollars per barrel. The report says that this is the company’s first quarterly loss since the January-March 2020 quarter. At that time the company had suffered losses on storage due to the processing of expensive crude oil.
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