New Delhi, Aug 13 : The largest state-run oil marketer Indian Oil Corp (IOC) Tuesday declared that its net losses in the first quarter ending June have reduced to Rs. 3,093 crore against Rs. 22,451 crore in the like quarter of 2012-13.

The company attributed the lower losses to the compensation it received from the government for selling fuel below market prices.

Announcing the results, IOC chairman R. S. Butola said under-recoveries, or losses, have declined to Rs. 1,212 crore as on June 30 against Rs. 17,485 crore on the same date of the previous year.

Butola said net losses in the quarter were due to under-recoveries yet to be compensated, in addition to an exchange rate loss of Rs. 840 crore, and provisioning of Rs. 400 crore for employee arrears.

IOC reported an average gross refining margin of $1.67 per barrel for the quarter in question, against $4.81 per barrel for the period April-June 2012. (IANS)