Government of India-owned oil and gas exploration company, Indian Oil Corporation (IOCL) has reported its financial results for the first quarter of FY2023. The state-run PSU reported a loss of Rs 1,992 crore in Q1, a first in two years. It had reported a profit of Rs 6,092 crore for the same period last year.
The last time IOCL had reported a loss was in Q4 of FY2020 (January-March 2020) on the back of inventory losses due to oil prices crashing due to the Covid-19 pandemic.
IOCL reported a revenue of Rs 2.51 lakh crore during the April-June quarter (+62%), compared to Rs 1.55 lakh crore for the same period last year.
The company said that the average Gross Refining Margin (GRM) for the period April- June 2022 was $31.81 per bbl (Rs 3,073) (April- June 2021: $6.58 / Rs 521 per bbl). The core GRM or the current price GRM for the period April -June 2022 after offsetting inventory loss/ gain comes to $25.34 (Rs 2,006) per bbl. “However, the suppressed marketing margins of certain petroleum products have offset the benefit of increase in GRM.”
It is important to note that while the retail price movement of petrol and diesel products have been on a steady rise, but the under recovery is slated to be around Rs 18 per litre.
While many people have vented frustration of constant price hikes, it is interesting to note that for almost 137 (till March) days the state-run oil marketing companies like Indian Oil Corporation, Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) had not hiked retail prices as the election was happening in five states.