The financial condition of the country’s largest petroleum company Indian Oil Corporation Limited (IOC) has turned out to be worrisome in the second quarter. In the second quarter of the current financial year, the company’s profit has fallen by 99 percent to Rs 180.01 crore. In the same quarter last year, the company’s profit was Rs 12,967.32 crore.
Analysts believe that this bad situation has been faced due to the decline in refinery and marketing margins. In this episode, selling domestic cooking gas (LPG) at a price lower than the cost also caused losses to the company. According to the report, IOC suffered a loss of Rs 8,870.11 crore on the sale of LPG in the first half of this year.
IOC said that it earned a margin of US $ 4.08 on converting crude oil into petrol and diesel, while it was US $ 13.12 per barrel in the same period last year. Apart from this, the company’s pre-tax income from fuel retail business has come down to Rs 10.03 crore, which was Rs 17,755.95 crore in the same period last year.
Apart from IOC, other petroleum companies like Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL) also made profits due to stable prices but their profits have also been affected due to the reduction in prices of petrol and diesel this year.