MOSCOW (MRC) -- India's largest oil PSU, Indian Oil Corporation reported a net loss of Rs 272.3 crore on Saturday, down from a net loss of Rs 1,992 crore in the June quarter. Analysts in a CNBC-TV18 poll expected the company to report a net loss of Rs 14,476 crore for the July-September period, said Indiainfoline.
The fuel retailing major IOC has used 50 percent of the one time grant of Rs 22,000 crore given by the government to compensate the three government owned oil companies on their LPG under recoveries.
Under recoveries is the gap between the cost and the selling price of fuel. In case the selling price is lower than the cost price, higher is the under recoveries. The grant is a first by the finance ministry as generalised subsidies for cooking gas have stopped and is being targeted only for the Ujjwala consumers.
This has helped the company sharply reduce its quarter on quarter net loss from Rs 1,993 crore during April-June to Rs 272 crore in the July -September quarter. Of course the Indian basket of crude oil too declined during the second quarter, from ГЫВ105.49/bbl in July to ГЫВ90.71/bbl in September.
But the company has still reported a net loss of Rs 2,265 crore for H1 April-September FY23 vs a net profit of Rs 12,300 crore in H1 FY22.
Given the price freeze on petrol and diesel sales since last eight months industry estimates an over one lakh crore under recovery on fuel and LPG , while the actual cash loss to companies is roughly estimated at Rs 50,000 crore.
The Petroleum Ministry said last month “Fuel price rise in India have been contained in comparison to exponential rise in developed countries. Most of the developed nations have witnessed significant inflation rise in gasoline price by almost 40 percent during July 21 to Aug 22, while in India, gasoline price has reduced by 2.1 percent."
We remind, Indian Oil Corporation Limited is expanding the petrochemical capacity of its Gujarat refinery (LuPech Project). Nuberg EPC, the leading Indian Global EPC and turnkey project management company today announced that it has been selected by Indian Oil for the construction of Rs 650+ crore Sulfur Recovery Plant consisting of Sulfur Recovery Unit (1 x 400 TPD) including control room and substation for sulfur block under international competitive bidding. Indian Oil, a Government of India Enterprise, is the country's top refiner and fuel retailer. The Sulphur Recovery Plant is being built with in Indian Oil's existing facility of Vadodra, Gujaratfor Petrochemical and Lube Integration Project.