Jolly Crow

A subsidy of Rs 7,343 crore to consumers saw the country’s largest fuel retailer, state-owned IndianOil Corporation (IndianOil), post a net loss of Rs 3,388 crore during April-June 2010, its first loss after five quarters. It had reported Rs 3,683-crore profit in the corresponding quarter in 2009-10.

It had reported a record loss of Rs 7,047 crore in the quarter ended September 2008 when global crude oil prices were volatile after rising to almost $150 per barrel.

The company’s gross turnover rose 23 per cent to Rs 77,965 crore from Rs 63,530 crore during the first quarter of 2009-10. According to IndianOil Chairman & Managing Director BM Bansal, the losses resulted from the sale of automobile and cooking fuels below the market price, lower refinery margin and foreign exchange fluctuations.

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