IOC defies forex woes & below-cost prices to clock `1,684-crore profit
10 Nov 2013 1:22 AM IST
IndianOil on Friday reported an amazing second quarter net profit of Rs 1,683.92 crore despite hefty foreign exchange losses and the government not fully compensating it for losses on fuel sales. ‘The figure would have been much higher had the company not suffered Rs 2,158 crore exchange losses against exchange gains of Rs 2,289 crore in the same quarter of the previous fiscal,’ IndianOil Chairman R S Butola said here. The company also had to absorb Rs 413 crore losses on diesel and cooking fuels due to the Government’s policy of allowing below market prices to prevail.
IOC lost Rs 18,291 crore on selling diesel, cooking gas (LPG) and kerosene during the quarter. It got Rs 8,634.14 crore from upstream firms like ONGC and another Rs 9,243 crore in cash subsidy from the government. Even after these, it had an unmet revenue loss of Rs 413 crore, Butola pointed out. IOC and other state-owned fuel retailers Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) sell diesel, domestic LPG and kerosene at government controlled rates which are way lower than the cost.
Butola said the companies incur Rs 9.58 per litre loss on diesel, Rs 35.77 a litre on kerosene and Rs 482.50 per 14.2-kg LPG cylinder. ‘At current prices, IOC will end the fiscal with an under-recovery (revenue loss) of Rs 71,200 crore. Industry will have an under-recovery of Rs 135,900 crore,’ he said.
IOC lost Rs 18,291 crore on selling diesel, cooking gas (LPG) and kerosene during the quarter. It got Rs 8,634.14 crore from upstream firms like ONGC and another Rs 9,243 crore in cash subsidy from the government. Even after these, it had an unmet revenue loss of Rs 413 crore, Butola pointed out. IOC and other state-owned fuel retailers Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) sell diesel, domestic LPG and kerosene at government controlled rates which are way lower than the cost.
Butola said the companies incur Rs 9.58 per litre loss on diesel, Rs 35.77 a litre on kerosene and Rs 482.50 per 14.2-kg LPG cylinder. ‘At current prices, IOC will end the fiscal with an under-recovery (revenue loss) of Rs 71,200 crore. Industry will have an under-recovery of Rs 135,900 crore,’ he said.
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