Bumper earnings of companies from expensive oil: We got record inflation from petrol-diesel, but Indian Oil earned a record profit of 24 thousand crores

The financial results of the country's largest oil company Indian Oil, which came on Tuesday, show that the company has broken all records of profits. IndianOil made a profit of Rs 6,021.88 crore in the quarter when it was being said that oil companies were losing up to Rs 9 per liter during January to March. The company accounts for about half of the country's petroleum market.

Indian Oil is the largest oil company in the country. According to the financial results, the consolidated income of the company stood at Rs 7.36 lakh crore in 2020-21. This is more than any company's earnings in the same financial year, said Sandeep Gupta, director-finance of the company. The company has made a net profit of Rs 24,184.10 crore during this period, which is a record till date.

Petrol and diesel prices increased in the last 10 days of March

IndianOil had sold 864.07 lakh tonnes of product including exports during the last financial year. Petrol and diesel prices were stable from January 1 to March 21. In the last 10 days of March, there was an increase in prices for nine days.

Inflation has reached the highest level of 15 years in the country

The central government has been releasing the Wholesale Price Index (WPI) data from the new series since 2012-13. Accordingly, 15.08% is the highest figure in ten years. WPI-based WPI inflation has remained above 10% for the 13th month since April 2021. At the same time, wholesale inflation reached a record level of 15.08% in April due to increase in the prices of food items, petrol-diesel and other commodities. It was 14.55% last month (in March) and 10.74% a year ago i.e. in April 2021.

The effect of wholesale inflation is also visible on retail

According to Madan Sabnavis, Chief Economist, Bank of Baroda, manufactured products have 64.23% weightage in the WPI, while the Consumer Price Index (CPI) i.e. retail has less weightage. If food items are expensive in bulk, then there is less impact on CPI. Services not included in WPI. The CPI also includes health, education and transport.