New Delhi: Petroleum marketing company Indian Oil (IOC) has suffered heavy losses for the first time in the last four years due to the Corona epidemic. The company suffered a huge loss of Rs 5,185 crore in the March quarter due to a steep fall in demand for petroleum due to costly crude oil and lockdown in the country.

One of the major reasons for the loss is that due to the steep fall in the prices of crude oil, the company incurred a huge loss in inventory (raw material deposited). The company had stored about 45 days with crude oil. After this, the prices of crude oil fell significantly. That is, when the company sent this crude oil for processing petroleum products, by then the crude oil had become very cheap and the company had to bear the loss on it.

With this, the demand for oil came to the ground in the March quarter for almost a week after the lockdown was imposed on 25 March. The company has incurred a huge loss of Rs 5,185 crore in the fourth i.e. March quarter of the financial year 2019-20. In the same quarter of the previous year, the company had a profit of Rs 6,099 crore.

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