Indian Oil Corporation (IOC) on Friday reported a net loss of Rs 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 Rs 1,992.53 crore in April-June compared to Rs 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 USD 100 per barrel.
These losses negated record refining margins. IOC earned USD 31.81 on turning every barrel of crude oil into fuel at the refinery gate as opposed to a gross refining margin (GRM) of USD 6.58 per barrel in April-June 2021.
The core margin, after offsetting inventory losses, was USD 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.