Essar Oil said that it has posted a loss of Rs. 70 crore during the quarter ending June 30. This has happened since the margins in the oil refinery business has contracted during the above mentioned period.

The company is owned by the Ruias.

It posted an income of $5.61 per barrel of crude oil during the April-June quarter. The gross refining margin during the same period was $6.74 per barrel in the previous year. For the same period, the net profit of the firm was Rs. 169 crore.

Revenue soared by 52 per cent to end at Rs. 12,048 crore.

Talking to media, Essar Oil Managing Director Naresh Nayyar said that while the operational performance of the company has been very good. The profitability has been low because of the declining margins.

The demand for petroleum products continued to rise because of the strong expansion of the automobile market.

Naresh further added that India will continue to be an anchor market for Essar Oil's expanding refining capacity. The company will also increase its reach on the retail front as the oil market gets to be de-regulated.