NEW DELHI: State-owned Indian Oil Corporation (IOC) today reported a net loss of Rs 3,388.39 crore in the first quarter, ended June 30 on account ofTop mid-cap funds on 3 year basis.IOC, the nation's largest oil firm, had posted a net profit of Rs 3,682.83 crore in the April-June quarter of the last fiscal, the company said in a statement. The company accrued the losses as it was forced to sell petrol, diesel, domestic cooking gas LPG and kerosene below their actual cost and was not compensated by the government for it.

IOC lost Rs 11,013.85 crore in revenues in April-June quarter. Of this, it got Rs 3,671.26 crore from upstream firms, Oil and Natural Gas Corp (ONGC), GAIL India and Oil India."Consequent to non-revision of retail selling price in line with international prices, the company has suffered net under-realisation of Rs 7,342.59 crore on sale of petrol, diesel, PDS kerosene and domestic LPG," it said.

The Government, which in the previous year had issued bonds or paid cash for upto half of the revenue lost on selling fuel below cost, has so far not announced how it will make up for over Rs 20,000 crore under-recoveries of IOC, Bharat Petroleum and Hindustan Petroleum in the first quarter of 2010-11 fiscal. Upstream firms give discount on crude oil and LPG they sell to the retailers to make up for one-third of the revenues IOC, BPCL and HPCL lose on selling fuel below cost. IOC said it made only $3 on processing of every barrel of crude oil in the April-June quarter as compared to $ 7.36 per barrel gross refining margin (GRM) in the corresponding period of the previous fiscal. COURTESY:ET