Oil marketers complain about price, but their profits goes up
State-run oil marketing companies may be whining about the government denying them their due with administered fuel prices that lower their revenues, but they are laughing all the way to the banks with manifold profit growth. Aided by cash subsidies and payments from other state companies to compensate for under-recoveries resulting from their selling fuel at below-market prices, Indian Oil Corp (IOC) and Bharat Petroleum (BPCL) have announced stellar profits for the fourth quarter of 2011-12, while Hindustan Petroleum (HPCL) is scheduled to unveil its results on Tuesday.Posting a much higher than expected earnings, the biggest of them all, IOC, on Monday reported a 224 % jump in its January-March net profit at Rs. 12,670.43 crore from R 3,905.16 crore a year ago.
BPCL on Saturday said its net profit nearly quadrupled to R3,962.83 crore in January-March 2012 from Rs. 935.18 crore.The results came within days of a controversial petrol price hike by the oil refiners.IOC’s chairman and managing director RS Butola said government compensation for the under-recoveries in diesel, LPG and kerosene, higher other income and lower expenditure supported its profit.