State oil marketing companies report Rs 4,403 crore net loss in Q1: P Lakshmi

State-run oil marketing companies have reported a combined loss of Rs 4,403 crore in April-June quarter of the current financial year, Minister of state for petroleum & natural gas Panabaaka Lakshmi told the Rajya Sabha on Tuesday.


But, the three marketing firms - Indian Oil Corp, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd - managed "meager profits" in previous financial years only after factoring in cash compensations provided by the government and discount on crude oil offered by state-run upstream companies, she said in a statement.

"Without compensation for under-recoveries (revenue losses), all OMCs would have declared huge losses," she said. The government controls retail prices of diesel, kerosene and cooking gas and pays cash compensations to the three marketing companies for selling fuels below market rates.

In order to insulate the common man from the impact of rise in international oil prices and the domestic inflationary conditions, the government continues to modulate retail selling prices of diesel, kerosene and cooking gas, an oil ministry statement quoting Lakshmi said.