Indian Oil Corporation Ltd (IOC) on Friday reported a loss of Rs 1,993 crore for the first quarter, citing fuel discounts and higher costs. Its revenue rose 63% to Rs 2.52 trillion compared with Rs 1.55 trillion in Q1FY22.

Most fuel companies have not revised pump prices for months to insulate consumers from the global crude price surge. While it has certainly helped mitigate inflation, the idea has not gone well from the business point of view.

The net loss of Indian Oil was Rs 1,993 crore for the quarter ended June 30, compared with a profit of Rs 5,941 billion crores a year ago. While the revenue from operations increased about 63% to Rs 2.52 trillion, expenses surged about 73% to Rs 2.55 trillion.

The company reported that its gross profit from converting a barrel of oil into refined products was $31.81 per barrel in the quarter, compared with $6.58 per barrel a year ago.

It is estimated that the increased availability of cheaper Russian crude will boost the refining capacity of Indian fuel giants, including Indian Oil. Indian Oil controls about a third of India’s five million barrels per day refining capacity.