New Delhi, Oct 31 (UNI) Indian Oil Corporation (IOC) today announced that the largest State-run oil marketing company has slipped into the red in the second quarter of the current fiscal, registering a loss of Rs 7,047 crore as compared to a profit of Rs 3,818 crore during the same quarter of the previous year.
The losses have been largely due to the depreciation of the rupee and falling petroleum product prices.
Its income, however, increased from Rs 57,418 crore to Rs 86,987 crore this year, a rise of 51.4 per cent.
Addressing a Press Conference here, IOC Chairman Sarthak Behuria said for the first six months ended September 2008, the Corporation's net loss was Rs, 6,632 crore as against profit of Rs 5,286 crore for the same period in the previous year.
He said the under-recovery on account of non-realisation of market related prices for petrol, diesel, PDS kerosene and LPG (domestic) during the first six months of the current fiscal was Rs 12,271 crore, after considering approval received from the Government for issuance of Special Oil Bonds of Rs 25,082 crore as compared to Rs 3,508 crore in the corresponding period of the previous year.
In the period under review, oil prices spiraled to as high as 147 dollars mid-July, but have since been falling and hovering around a little over 60 dollars.
The average gross refining margin has also come down to the to 6.36 dollar a barrel from 8.44 dollar a barrel last year.
''Refining margins during the April-September 2008 are lower mainly due to negative impact of 4.08 dollar per barrel on account of inventory valuation against zero-dollar during April-September 2007,'' Mr Bahuria said.
Mr Behuria said "Petrol margins will turn positive from tomorrow.
Based on the average crude price of second fortnight of October, it should be around Rs 4 a litre." However, the company would continue to make losses on diesel sales at about Rs one a litre.
Losses on sale of kerosene would be Rs 22 a litre and on LPG (cooking gas) Rs 343 per cylinder.
UNI GS MP RAI1912