New Delhi (Agencies): Despite all talk of losses due to oil subsidies, state-owned Indian Oil Corp (IOC) on Thursday reported an over two-fold jump in net profit to Rs 1,634 crore for the quarter ended December 31, 2010.

Net profit was up 134.7 percent to Rs 1,634.76 crore in the October-December quarter from Rs 696.59 crore in the same period a year ago, the company said in a statement.

The profit was more after the government approved the release of an Rs 8,000 crore cash subsidy to IOC and the other state-owned fuel retailers to make up for half of the revenues they lost on selling diesel, domestic LPG and kerosene below cost in the third quarter.

Out of the total cash subsidy, IOC got Rs 4,442.45 crore, while Bharat Petroleum Corp (BPCL) got Rs 1,809.85 crore and Hindustan Petroleum Corporation (HPCL) Rs 1,747.70 crore.

While petrol prices was de-regulated from the government control in June, state oil firms continue to sell diesel, domestic LPG and kerosene at government-dictated prices, which are substantially lower than the cost of production.

IOC, BPCL and HPCL currently lose Rs 9.23 per litre on diesel, Rs 21.60 per litre on kerosene and Rs 356.07 per 14.2-kg LPG cylinder.