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Indian Oil Corporation has reported an over two-fold jump in net profit to Rs 1,634 crore for the third quarter ended December 31, 2010.
The net profit rose 134.7 per cent to Rs 1,634.76 crore during the October-December quarter of this fiscal from Rs 696.59 crore in the same period a year ago, the company said in a statement.
The profit was higher after the Government approved the release of Rs 8,000-crore cash subsidy to IOC and other state-owned fuel retailers to make up for half of the revenues they lost on selling diesel, domestic LPG and kerosene below cost in the third quarter.
Out of the total cash subsidy, IOC got Rs 4,442.45 crore, while Bharat Petroleum Corp got Rs 1,809.85 crore and Hindustan Petroleum Corporation Rs 1,747.70 crore.
While petrol prices were freed from the Government control in June, state oil firms continue to sell diesel, domestic LPG and kerosene at government-dictated prices, which are substantially lower than the cost of production.
IOC, BPCL and HPCL currently lose Rs 9.23 per litre on diesel, Rs 21.60 per litre on kerosene and Rs 356.07 per 14.2-kg LPG cylinder.
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