Indian Oil Corporation (IOC), the nation’s largest oil firm, on Tuesday reported an 81 per cent drop in June quarter net profit as refinery and marketing margins fell and the firm booked under-recovery on the sale of domestic cooking gas LPG at government-controlled rates.

IOC reported a standalone net profit of ₹2,643.18 crore in the April-June period — the first quarter of the current 2024-25 fiscal year — compared with a profit of ₹13,750.44 crore a year back, the company said in a stock exchange filing.

Net profit also declined sequentially, when compared to an earning of ₹11,570.82 crore in the January-March quarter.

While the PSU earned $6.39 on turning every barrel of crude oil into fuel in the quarter ($8.34 per barrel gross refining margin last year), its pre-tax earnings from downstream fuel retailing businesses slumped 77 per cent to ₹4,299.96 crore.

The company and other state-owned fuel retailers — Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) — last year made extraordinary gains from holding petrol and diesel prices despite a drop in cost.

GAIL net jumps 77%

GAIL (India) Ltd, the nation’s largest gas transportation and distribution firm, on Tuesday reported a 77.5 per cent jump in its June quarter net profit after earnings from the gas marketing business doubled.

Consolidated net profit of ₹3,183.35 crore in April-June was higher than ₹1,792.99 crore earnings in the same period a year, according to a stock exchange filing of the company.