Indian Oil Corporation on Tuesday said its fourth-quarter profit fell 16 per cent to Rs 1,849.94 crore (Rs 18.49 billion) after the government barred the company from raising prices of cooking gas and auto fuels.

Its net profit fell to Rs 1,849.94 crore, or Rs 15.84 a share, in the three months ended March 31 from Rs 2,199.65 crore (Rs 21.99 billion), or Rs 18.83 a share, a year ago.

The sales increased from Rs 31,394.5 crore (Rs 313.94 billion) in January-March 2003 to Rs 32,353.16 crore (Rs 323.53 billion) this year, company officials said.

IOC, Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation Ltd may lose a combined $2.2 billion this financial year unless the new government allows them to raise prices, research group Cris Infac said.

The previous government barred refiners from raising rates before elections that ended on May 10 even as the surging crude oil prices increased their costs.  

IOC will pay a dividend of Rs 16 a share for the year ended March 31. The payout is in addition to the Rs 5 dividend the company paid to shareholders in January this year.

For the 2003-04 fiscal, IOC net profit was up 14.5 per cent at Rs 7,004.28 crore (Rs 70.04 billion) as compared to Rs 6114.89 crore (Rs 61.14 billion) in the previous year.

The sales increased by 7.17 per cent, from Rs 110,589.14 crore (Rs 1,105.89 billion) in 2002-03 to Rs 118,522.74 crore (Rs 1,185.22 billion) in the year ended March 31, 2004.