IOC posts Rs 1,992.53 cr net loss in Q1 on petrol, diesel price freeze

Indian Oil Corporation (IOC) on Friday reported a net loss of Rs 1,992.53 crore for the June quarter because of a freeze on petrol, diesel and LPG prices despite rising input costs.

Net loss of Rs 1,992.53 crore in April-June compared to Rs 5,941.37 crore of net profit in the same period a year back, the company said in a stock exchange filing.

This is this quarterly loss in over two years. The company had in January-March 2020 reported a net loss because of inventory losses.

State-owned fuel retailers - IOC, Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) - did not change the prices of petrol and diesel during the quarter despite rates of crude oil (raw material for making fuel) climbing above $100 per barrel.

These losses negated record refining margins. IOC earned $31.81 on turning every barrel of crude oil into fuel at the refinery gate as opposed to a gross refining margin (GRM) of $6.58 per barrel in April-June 2021.

The core margin, after offsetting inventory losses, was $25.34 per barrel.

"However, the suppressed marketing margins of certain petroleum products have offset the benefit of an increase in GRM," the company said in notes to its accounts.