The IOC is said to be incurring losses as prices of petrol, diesel and LPG remain stable despite the rise in raw material prices. IOC said in an information sent to the stock market on Friday that the company had posted a net profit of Rs 5941.37 crore in the first quarter of last financial year 2021-22, but this time it posted a net loss of Rs 1992.53 crore in the April-June quarter.
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First loss in two years
This is the first time in the last 2 years that Indian Oil Corporation has made a loss in any quarter. The IOC company posted a net loss in the last quarter of FY 2019-20 due to inventory losses.
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Increase in crude oil prices
Fuel retailers IOC, Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) kept their petrol and diesel prices unchanged during the quarter despite the rise in crude oil prices. This has affected the refining margin of these companies.
No hike for 114 days
Despite the rise in crude oil prices, petrol and diesel prices remained unchanged during the quarter. Its operating revenue rose to Rs 1.55 trillion in April-June, mainly due to higher international oil prices. 2.51 trillion.
A loss of Rs 14 per liter of petrol
Crude oil imports in India averaged $109 per barrel, but retail pump rates were around $85-86 per barrel. Companies are facing a loss of Rs 12 to 14 on petrol and diesel.