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The Government’s decision to impose special additional excise duty (SAED) and road and infrastructure cess (RIC) on export of high-speed diesel (HSD), aviation turbine fuel (ATF) and motor spirit (MS) with effect from July 1 impacted financials of Mangalore Refinery and Petrochemicals Ltd (MRPL) during the second quarter of 2022-23.
MRPL registered a loss of ₹1789.14 crore in the second quarter of 2022-23 against a loss of ₹409.60 crore in the corresponding quarter of 2021-22.
The board of directors of the company, which approved stand-alone and consolidated unaudited financial results for the Q2 and H1 of FY 2022-23 on Friday, informed the stock exchanges that the Government has levied SAED and RIC on export of HSD, ATF and MS with effect from July 1, and correspondingly there is further decrease in domestic refinery transfer price (RTP).
“The impact on the financials of the company on account of the same is ₹1,026 crore and ₹1,163 crore, respectively. The company has suitably represented to the Govt of India through administrative ministry (MoPNG) in this regard,” it said.
(RTP, which is also known as Refinery Gate Price, is the price paid by the oil companies to domestic refineries for the purchase of finished petroleum products at refinery gate.)
It may be mentioned here that a businessline report, dated July 11, had highlighted the impact of SAED on the financials of the company.
GRM
The company recorded a negative GRM (gross refining margin) of $4.46 a barrel during Q2 of 2022-23 as against $2.26 a barrel in Q2 of FY23. (GRM is the difference between the price of crude oil and the end products.)
The exports of the company stood at ₹11,092 crore during the second quarter of 2022-23 against ₹5089 crore in the corresponding period of the 2021-22.
The total throughput of the refinery was at 3.96 million tonnes during the Q2 of FY23 as against 3.24 million tonnes in Q2 of FY 22.
The refinery recorded a highest ATF production of 178 TMT (thousand metric tonnes) in September 22 against the previous highest of 170 TMT in December 2018.
MRPL’s gross revenue from operations increased to ₹28,452.92 crore in Q2 of 2022-23 against ₹17,752.84 crore in the corresponding period of the previous fiscal.
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