IOC loses Rs 3,719 crore
New Delhi   11-Aug-2011

State-owned IndianOil on August 10, 2011 reported widening of net loss in the first quarter ended 30 June 2011 to Rs 3,719 crore as the government made good only one third of the losses it made on selling auto and cooking fuel at state-controlled rates.

IOC had reported a net loss of Rs 3,388 crore in the April-June quarter of financial year 2010-11, the company chairman Mr RS Butola told reporters here.

“The major reason (for widening of net loss) is that we have had a higher number of unmet under-realisation on diesel, domestic LPG and kerosene,” he said.

IOC lost Rs 23,806 crore on selling diesel, domestic LPG and kerosene at the government-controlled rates during the first quarter of this fiscal. Against this, it got Rs 7,932 crore by way of upstream assistance and another Rs 8,201 crore from the government. The unmet fuel loss in Q1 increased to Rs 7,673 crore from Rs 7,343 crore in the same period a year ago, Mr Butola said.

Also, the company had to pay Rs 467 crore more in Q1 on account of higher interest on its borrowings. Besides, IOC had an inventory loss of Rs 900 crore. The company had a significant amount of crude inventory when the government on 26 June cut customs, or import duty, to zero from five per cent, leading to the loss due to revaluation, he said.