Indian Oil Corporation (IOC) reported a net profit of `4,916.6 crore on a standalone basis for the quarter ended December 31, recording a 110% rise from the same period a year ago. The state-run oil refining and marketing company attributed the increase in profit to inventory gains, stemming from fluctuations in global oil prices and rising margins of petrochemical products. The company also announced the board’s approval to build a new refinery Nagapattinam in Tamil Nadu, at an estimated gross value of Rs 31,500 crore.
As retail prices of petroleum products are mapped with international rates, a gradual rise of global oil prices in Q3FY21 meant that by the time IOC sold its products after processing crude, retail rates had increased. The inventory gain in the fiscal was Rs 2,360 crore against Rs 1,608 crore a year ago, company sources said. Net profit of IOCL in the quarter would have been higher had its gross refining margin not decreased 11% year-on-year to $2.96/barrel. Owing to rising global crude prices and very high government taxes, petrol and diesel are being sold at record high rates.
