The loss is attributable to the losses on sale of petrol and diesel. As per the sources, currently the petroleum companies are losing Rs 14/Ltr on petrol and Rs. 8/Ltr on diesel.
Due to negative margins on petrol and diesel, LIOC had reported loss of Rs. 652 million in March 2017 quarter also. LIOC officials said that it is very difficult time where the company has to continuously sell petrol and diesel below the cost of procurement.
Losses could have been much higher, but the company has managed positive margins on other business segments.
The officials further told that despite incurring loss on every additional liter of petrol & diesel sold in the market, LIOC has continued selling auto-fuels.
During the strike period also, irrespective of the fact that LIOC was making losses on higher sales, the company continued to sell higher quantity of petrol & diesel.
More sales volume has resulted into higher losses. The officials also informed that during the period April-June 2017, LIOC has paid approx Rs 6,200 million to Government Exchequer, which is almost 1/3rd of the turnover.
The current market prices of auto fuels were last revised in January 2015 and since then, same prices are prevailing in the country. The crude oil prices have moved in the range of $30/bbl to $60/bbl during the period January 2015 till date but selling prices have remained the same.
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