New Delhi: Even as fuel prices have remained unchanged for over two months, it has emerged that Indian Oil Corporation (IOC) sold petrol and diesel at a loss during the period of April-June.
According to an ICICI Securities report, IOC sold petrol at a loss of Rs 10 per litre and diesel at a loss of Rs 14 a litre, as the firm reported its first quarterly net loss in over two years.
India’s largest oil refining and fuel retailing company reported a net loss of Rs 1,992.53 crore in April-June. IOC had reported Rs 5,941.37 crore of net profit in the same period a year ago (April-June 2021-22) and Rs 6,021.9 crore in the preceding quarter of January-March (2021-22).
“IOC (Indian Oil Corporation) reported an 88 per cent year-on-year decline in its standalone EBITDA to Rs 1,358.9 crore and a net loss of Rs 1,992.5 crore, despite record high gross refining margins (GRMs) of USD 31.8 per barrel for the quarter,” ICICI Securities said.
The report said decline in earnings was driven by a sharp fall in retail fuel margins for petrol and diesel with an estimated net loss of Rs 10 per litre for petrol and Rs 14 a litre for diesel for the quarter and inventory loss of Rs 1,500-1,600 crore due to excise duty cut in the quarter.
Fuel retailers can revise petrol and diesel prices daily in line with cost, but IOC, Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) kept prices on hold despite a rise in input cost.
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