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The Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Ltd (HPCL), and Bharat Petroleum Corporation Ltd (BPCL), three of the biggest state-owned petrol, diesel, retailers announced a combined loss of Rs 18,480 crore in the first quarter (April to June) of the current fiscal year 2022-23. The losses have been incurred despite the constant rise in the price of petrol and diesel.
National media quoted the stock exchange filing of the three companies which attributed the loss to erosion in the marketing margin on petrol, diesel, and domestic LPG.
The state-owned IOC, HPCL, and BPCL have not changed the rates of fuels for the last four months despite the prices of oil increasing in the international market. Notably, the price of petrol and diesel are revised daily based on the international market. They have also not changed cooking gas LPG rates in tandem with cost.
The three fuel retailers refrained from revising fuel prices reportedly to help the government contain inflation which had topped 7 percent. While crude oil imports were made by India at an average of USD 109 per barrel, the three companies had been keeping the retail prices intact in alignment with the earlier USD 85-86 per barrel cost.
The three of the state-owned firms haven't explained the reasons for freezing the rates since April 6. However, the Government have hold that oil companies are free to revise retail prices.
Last month, ICICI Securities in a report stated that IOC, BPCL, and HPCL sold petrol and diesel at a loss of Rs 12-14 per liter, completely offsetting the strong refining performance during the quarter.
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