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NEW DELHI: State-run Indian Oil Corporation’s net profit leaped to Rs Rs 8,063 crore in the third quarter (October-December 2023) compared to Rs 448 crore in the previous corresponding period, driven by the sharp drop in crude since September amid unchanged fuel prices.
Sequentially, however, the profit was 37% lower than the Rs 12,967.32 crore profit posted by India’s largest public sector refiner and fuel retailer in the July-September quarter of the 2023-24 fiscal.
A company statement on Thursday pegged gross refining margin $13.2 per barrel during the April-December 2023 period against $21 in the corresponding period of 2022. It did not give refining margin for the December quarter.
The company said its profit has risen in the 2023-24 fiscal “mainly on account of higher marketing margin and lower exchange losses.” But in reality, the profit has been driven by continuing the freeze on pump prices even when oil prices came down for extended periods, allowing the company to reap hefty marketing margin from petrol and diesel sales.
Pump prices have been frozen since May 2022 under informal government diktat. Crude was hovering at $85 per barrel when fuel prices were frozen, while it is trading below $80 since September. While the company said it left fuel prices unchanged to cushion consumers from the impact of oil price spike, in reality it also helped to make up losses suffered during 2022-23 when oil had hit $90 per barrel.
Sequentially, however, the profit was 37% lower than the Rs 12,967.32 crore profit posted by India’s largest public sector refiner and fuel retailer in the July-September quarter of the 2023-24 fiscal.
A company statement on Thursday pegged gross refining margin $13.2 per barrel during the April-December 2023 period against $21 in the corresponding period of 2022. It did not give refining margin for the December quarter.
The company said its profit has risen in the 2023-24 fiscal “mainly on account of higher marketing margin and lower exchange losses.” But in reality, the profit has been driven by continuing the freeze on pump prices even when oil prices came down for extended periods, allowing the company to reap hefty marketing margin from petrol and diesel sales.
Pump prices have been frozen since May 2022 under informal government diktat. Crude was hovering at $85 per barrel when fuel prices were frozen, while it is trading below $80 since September. While the company said it left fuel prices unchanged to cushion consumers from the impact of oil price spike, in reality it also helped to make up losses suffered during 2022-23 when oil had hit $90 per barrel.
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