The country’s largest refining and marketing company Indian Oil Corporation is facing under recoveries of Rs 170 per day in selling petrol, diesel, kerosene and liquefied petroleum gas (LPG) cylinder below international price parity price.
“We are losing Rs 10.57 per litre in petrol, Rs 11.56 per litre in diesel, Rs 19.89 per litre of kerosene, and in LPG it is Rs. 331.34 per 14.5 kg of gas cylinder,” IOC chairman S. Behuria said.
IOC posted a 16.7 per cent growth in net profit at Rs 2,090.69 crore for the third quarter ended December 31, 2007 as compared to Rs 1,791.37 crore in the same period last year. Total income also increased by 15.9 per cent to Rs 65,404.84 crore for the quarter from Rs 56,438.16 crore during the corresponding period last year, the company said.
Behuria said the profit was on account of improved refining margin to the tune of Rs 6,000 crore, foreign exchange gain of Rs. 900 crore and inventory gain of approximately Rs 1,759 crore. On the other hand, the company had in the corresponding period last year made profit from sale of Oil and Natural Gas Corporation shares, which fetched Rs 3,200 crore. The company also faced a tax liability of Rs 3,225 crore in the quarter.