State-run oil marketing firm, Indian Oil Corporation (IOC) Saturday reported a loss of Rs 3,388.39 crore for the quarter ended June 30 on account of selling fuel below cost.
The company had logged a profit of Rs 3,682.83 crore in the like period 2009-10.
"Consequent to non-revision of retail selling prices in line with international prices, the company has suffered net under-realization (loss) of Rs 7,342.59 crore on sales of MS (petrol), HSD (diesel), kerosene and LPG (domestic cooking gas)," said the company in a statement.
The loss is also being attributed to the non-issuance of bonds to the oil firm by the government for revenue loss on selling fuel below its original cost.
The petrochemical major's net sales for the first quarter increased by 23 percent to Rs 71,275.07 crore in the quarter under review as against Rs 57,945.27 crore in the corresponding period of the previous year.
During the April-June quarter, the company sold 17.254 million tonnes of petroleum products domestically as compared to 16.703 million tonnes in the like period of 2009-10.
Exports of the petroleum products, however, marginally declined to 1.058 million tonnes in the first quarter as against 1.077 million tonnes in the year-ago period.
The oil giant processed 13.278 million tonnes of crude oil in the first quarter as compared to 12.466 million tonnes in the corresponding period last year.