New Delhi:Indian Oil Corp. Ltd (IOC) posted a profit of Rs.9,611 crore for the three months to September, with the government compensating the state-controlled refiner to the tune of Rs.16,094 crore for selling fuel below the market price.
The oil marketing company (OMC) had posted a loss of Rs.7,486 crore in the corresponding period last fiscal. And in the first quarter of this fiscal, IOC posted the biggest quarterly loss—Rs.22,451 crore—by a publicly traded Indian firm.
IOC’s turnover improved to Rs.1.06 trillion in the second quarter from Rs.81,458 crore in the corresponding period last year.
State-owned OMCs such as IOC, Hindustan Petroleum Corp. Ltd and Bharat Petroleum Corp. Ltd are compensated by the government for selling diesel, kerosene and cooking gas at government-fixed prices.
IOC chairman and managing director R.S. Butola declined to answer a question about a proposal to increase the annual cap on the supply of subsidized domestic cooking gas cylinders from six to nine.