The Indian Oil Company (IOC) has incurred a loss of Rs 7,047 crore in the second quarter ending Sept 30.The loss is believed to be more than Rs 6,963 crore that the company made in 2007-08.

The company in the first half of the year 2008-09 lost Rs 6,632 crore, as against a net profit of Rs 5,286.16 crore in the same period last year.

The Chairman of IOC, Mr. Sarthak Behuria said, "Increase in net under-realization along with foreign exchange loss due to rupee depriciation, inventory valuation losses due to falling crude oil prices, and increased expenditure on account of rise in interest rates as well as increase in borrowings are the main reasons for such a huge loss during the quarter.......It is the mother of all losses for ".

He added that the under-realization on sale of petrol, diesel, cooking gas and kerosene for the quarter stood at Rs 4,951 Crore.

The Company, however, hopes to make profit on the sales of petrol due to fall in global crude oil and product prices.

Mr Behuria stated, "Based on average oil price of second fortnight of October, we expect to make Rs 4.12 a litre margin........IOC will now continue to lose Rs 85 crore daily on sale of diesel, kerosene and LPG.”