Indian Oil Lost Rs 22 Crore/Day As They Sold Petrol At Rs 10/Litre Loss & Diesel At Rs 14/Litre Loss
During the April June quarter, India’s largest oil refining and fuel retailing firm, Indian Oil Corporation (IOC), reportedly sold petrol and diesel at a loss of Rs 10/litre and Rs 14/litre, respectively.
This resulted in the company reporting its first quarterly net loss in more than two years.
IOC Reports Huge Loss In April-June Quarter
News from PTI has also confirmed that IOC reported a net loss of Rs 1,992.53 crore in April-June, compared to a net profit of Rs 5,941.37 crore in the same period last year and Rs 6,021.9 crore in the previous January-March quarter.
As per ICICI Securities, “Earnings decline 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 are supposed to adjust their prices daily based on cost; however, IOC and other state-owned firms Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) kept their prices unchanged despite a rise in input costs.
The basket of crude oil India imports averaged $109 per barrel, but retail pump prices were around $85-86 per barrel.
IOC’s First Loss In More Than Two Years
This is the company’s first quarterly loss in more than two years. As per reports, the company reported a net loss from January to March 2020 due to inventory losses from processing more expensive crude.
As we reported earlier, The company’s net profit declined 31.4% to Rs 6,021.88 crore in the March quarter on a YoY basis, led by a drop in its refining margins as the margins of its petrochemicals’ business contracted and sales of auto fuel fell.
However, the figure reported in Q4 FY22 came in higher than that reported at Rs 5,860.8 crore in the Dec 2021 ending quarter or Q3.
IOCL’s Q4 & FY22 Figures: HIghest-Ever Net Profit and Revenue
For the financial year 2021-22, IOCL posted the highest-ever revenue recorded by any other Indian company.
The figure stood at Rs 7.28 lakh crore or $96 billion on standalone basis, while on a consolidated basis, it came at Rs 7.36 lakh crore.
Also, in FY22, the company’s net profit jumped to its highest-ever figure at Rs 24,184.1 crore, compared to Rs 21,836.04 crore in the year-ago period.
The revenue from operations for the company surged to Rs 2.06 lakh crore in the March quarter, compared to Rs 1.63 lakh crore in the year-ago period, led by a shoot in oil prices in the quarter, thanks to the persisting Russia-Ukraine crisis.