IOC’s losses fall on softening crude rates

IOC’s losses fall on softening crude rates

New Delhi: Indian Oil Corp. (IOC), the nation’s largest fuel retailer, has seen its losses on fuel sales this fiscal coming down by 5.6% to Rs21,825 crore on softening international oil prices.

“We were till last month losing Rs79 crore per day on selling petrol, diesel, domestic LPG and kerosene at government-controlled rates but this month the losses have come down to Rs67 crore a day," a company official said.

International oil rates were marginally lower in the second fortnight of September, based on which the current revenue loss have been calculated. The basket of crude oil India buys averaged $67.76 a barrel in the second half as against $68.58 per barrel in the first fortnight.

“The daily losses on fuel sales are down from Rs90 crore in the first fortnight of September," he said.

IOC and sister public sector enterprises—HPCL and BPCL—which have been barred by the government from revising fuel prices to keep inflation under check, lose Rs2.23 per litre on petrol, Rs1.16 a litre on diesel, Rs204.51 per 14.2 kg domestic LPG cylinder and Rs16.14 per litre on kerosene, at present.

“At current prices, IOC’s revenue loss on fuel sales for full fiscal is likely to be 21,825 crore (as against Rs23,510 crore estimate of last month)," the official said.

For the industry—IOC plus BPCL and HPCL—the revenue loss is likely to be Rs38,600 crore compared to previous estimate of Rs41,440 crore.