IOC is incurring heavy losses due to cut in petrol and diesel prices – Business News India

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 lost 14 rupees per liter on the sale of diesel. This is the reason why the company is in the first quarter of the year.

The country’s largest oil refining and fuel retailing company posted a net loss of Rs 1,992.53 crore in the first quarter of the current financial year 2022-23. The company earned a net profit of Rs 5,941.37 crore in the same quarter of the previous financial year. At the same time, the company had a net profit of 6,021.9 crore rupees in the previous January-March quarter. IOC’s annual income (EBITDA) fell by 88 percent to 1,358.9 crore rupees. At the same time, the company made a net loss of 1,992.5 crore rupees. However, during the quarter, the company’s gross refining margin (GRM) remained at a high level of 31.8 dollars per barrel.

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ICICI Securities’ report said, “The main reason for the decline in the company’s income is the sharp decline in margins on petrol and diesel retail sales.” The company lost 10 rupees per liter of petrol and 14 rupees per liter of diesel. In addition to this, due to the reduction in excise duty, the company suffered a loss of 1,500 to 1,600 crore rupees on storage. The report says that petroleum companies revise petrol and diesel prices daily according to cost. But along with IOC, Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) have not increased the cost of fuel.

At this time, India’s raw oil imports are sitting at an average of 109 dollars per barrel. It is said in the report that the price of fuel at the petrol pump in the country is 85 to 86 dollars per barrel. The report says that it is the company’s first quarter loss since January-March, 2020. At that time, the company lost its storage due to the processing of expensive crude oil.

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