Indian Oil Corporation (IOC) has hinted at a possible reduction in petrol prices after the fortnightly review of the global crude price baskets on August 14 is conducted, as there are “positive indications” coming from the international pricing pattern.
The country’s largest retailer meanwhile has reported a net profit of Rs 2,523 crore in the first quarter of the current fiscal after State-owned and upstream firms made recorded good benefits from their fuel sales. The company had reported a net loss of Rs 3,093.23 crore in the corresponding period of the previous fiscal due to delays in payment of Government subsidy.
Speaking to media persons while announcing the company’s first quarter results, IOC’s newly appointed Chairman B Ashok did not give a clear reply when asked whether there would be any downward revision in petrol prices when they come up for fortnightly review on August 14. However, at the same time he accepted that there was a positive indication in pricing patterns of global crude price baskets.
On the company’s profit earned during Q1 of FY15, Ashok said, “ the net profit was mainly because of a foreign exchange gain of Rs 128 crore in Q1 as compared to a foreign exchange loss of Rs 4,024 crore.”
Also IOC gained Rs 745 crore from RBI currency swap window, Rs 348 crore from writeback on trust receivables and Rs 556 crore on savings in interest outgo on borrowing, he said adding that these gains were partially offset by Rs 1,028 crore provision for tax versus nil in Q1 last fiscal.
IOC lost Rs 15,328.34 crore on selling diesel, domestic lPG and kerosene at government controlled rates in April-June this year. The Government made good about 40 per cent of this by way of cash subsidy of Rs 6,076 crore. It got another Rs 8,107.21 crore from upstream firms like ONGC.