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IOCL Loss: India Oil suffered a ‘great loss’ of Rs 1992 crore due to non-increasing prices, a loss of Rs 14 per liter of petrol

Photo:FILE IOCL

Highlights

  • Indian Oil Corporation (IOC) has suffered huge losses
  • IOC reports a net loss of Rs 1,992 crore in the June quarter
  • Loss of Rs 12-14 per liter on petrol and diesel

IOCL Loss: Indian Oil Corporation (IOC) has suffered huge losses due to the ban on the prices of petrol and diesel. IOC reported a net loss of Rs 1,992 crore in the June quarter. The company’s refining margins were eroded due to rising crude oil prices. Keeping the prices of petrol, diesel and LPG unchanged despite the increase in raw material cost, the company has incurred losses.

Losses for the first time in the last two years

The company told the stock exchange that IOCL had a net loss of Rs 1,992.53 crore in April-June. While in the same period a year ago it was in a net profit of Rs 5,941.37 crore. The oil company has made a loss in a quarter for the first time in the last two years. The company had incurred a net loss in the last quarter of the financial year 2019-20 on account of loss on inventory.

Prices have not increased since 114 days

Retail fuel vendors IOC, Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) did not change the prices of petrol and diesel during the quarter despite a jump in crude oil (raw material for making fuel) . This has affected the refining margins of these companies. Its revenue from operations rose to Rs 2.51 trillion from Rs 1.55 trillion in April-June, mainly due to higher international oil prices.

14 rupees loss on every liter of petrol

Crude oil imports into India averaged USD 109 per barrel, but the retail pump rates ranged from around USD 85-86 per barrel. Companies are incurring a loss of Rs 12-14 per liter on petrol and diesel.

Prices did not increase even before UP elections

IOC, BPCL and HPCL stopped revising rates ahead of assembly elections in states like Uttar Pradesh. Then the 137-day prices had not increased and in early April the prices were hiked by Rs 10 a liter before another round of freezes began.

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