IOC, BPCL, HPCL witnesses Rs 690 bn net profit from Apr-Dec
OIL & GAS

IOC, BPCL, HPCL witnesses Rs 690 bn net profit from Apr-Dec

State-owned fuel retailers Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation reported a bumper profit totalling over Rs 690 billion in the first nine months of the current fiscal, exceeding their annual earnings in pre-oil crisis years. The combined net profit of IOC, BPCL, and HPCL in April-December FY24 surpassed their annual earnings of Rs 393.56 billion in the pre-oil crisis year.

The retailers have resisted calls to revert to daily price revision and pass on the softening in rates to consumers. They argue that prices continue to be extremely volatile, rising on one day and falling on the other, and that their past losses have not been fully recouped.

The three companies, which control roughly 90 percent of India's fuel market, have 'voluntarily' refrained from changing petrol, diesel, and cooking gas (LPG) prices for almost two years now, resulting in losses when input costs were higher and profits when raw material prices were lower.

During April-September 2022, they posted a combined net loss of Rs 212.01 billion despite accounting for a Rs 220 billion announced but not paid LPG subsidy for the previous two years.

Subsequent softening of international prices and the government giving out LPG subsidy helped IOC and BPCL post an annualized profit for 2022-23. However, HPCL was in the red.

This fiscal year, things have changed dramatically. The three firms posted record earnings in the first two quarters (April-June and July-September) when international oil prices, against which domestic rates are benchmarked, almost halved to USD 72 a barrel from a year ago.

International prices rose again in the subsequent quarter to USD 90, leading to moderation of their earnings. But, on a yearly basis, they had rich profits. According to IOC's regulatory filing, in the first nine months of the current fiscal (April-December 2023), the company posted a standalone net profit of Rs 347.81 billion.

State-owned fuel retailers Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation reported a bumper profit totalling over Rs 690 billion in the first nine months of the current fiscal, exceeding their annual earnings in pre-oil crisis years. The combined net profit of IOC, BPCL, and HPCL in April-December FY24 surpassed their annual earnings of Rs 393.56 billion in the pre-oil crisis year. The retailers have resisted calls to revert to daily price revision and pass on the softening in rates to consumers. They argue that prices continue to be extremely volatile, rising on one day and falling on the other, and that their past losses have not been fully recouped. The three companies, which control roughly 90 percent of India's fuel market, have 'voluntarily' refrained from changing petrol, diesel, and cooking gas (LPG) prices for almost two years now, resulting in losses when input costs were higher and profits when raw material prices were lower. During April-September 2022, they posted a combined net loss of Rs 212.01 billion despite accounting for a Rs 220 billion announced but not paid LPG subsidy for the previous two years. Subsequent softening of international prices and the government giving out LPG subsidy helped IOC and BPCL post an annualized profit for 2022-23. However, HPCL was in the red. This fiscal year, things have changed dramatically. The three firms posted record earnings in the first two quarters (April-June and July-September) when international oil prices, against which domestic rates are benchmarked, almost halved to USD 72 a barrel from a year ago. International prices rose again in the subsequent quarter to USD 90, leading to moderation of their earnings. But, on a yearly basis, they had rich profits. According to IOC's regulatory filing, in the first nine months of the current fiscal (April-December 2023), the company posted a standalone net profit of Rs 347.81 billion.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Sabarmati Riverfront Two Plots Up for Auction at Rs2.24 bn Base Price

Two commercial plots on the western bank of the Sabarmati Riverfront will be auctioned with a base price of Rs 112 crore each, equivalent to Rs 1.12 bn apiece and Rs 2.24 billion in total. The parcels are located adjacent to the Metro Rail Bridge in Ahmedabad and form the first commercial offering after a prolonged pause. The Riverfront Development Corporation has framed the sale as part of a phased commercial release to revive development along the riverfront. The combined base valuation has been set by the corporation to reflect market rates along the riverfront. The corporation has fixed a ..

Next Story
Infrastructure Urban

Andhra Pradesh to Connect Over One Million Streetlights

Andhra Pradesh will undertake a statewide smart streetlighting programme across all 123 Urban Local Bodies (ULBs), bringing around 1.05 million (mn) streetlights under an AI enabled monitoring and management system. The programme will be implemented by Energy Efficiency Services Limited (EESL) with the Commissioner and Director of Municipal Administration under the state Municipal Administration and Urban Development Department. The project aims to convert conventional streetlighting into a digitally managed municipal service monitored and maintained remotely. The initial phase will cover abou..

Next Story
Infrastructure Urban

AMC To Procure Four Machines For Guard Rail Cleaning

Ahmedabad Municipal Corporation will introduce four specialised machines for cleaning guard railings along major roads and the central verges of BRTS and Metro corridors. The civic body plans to replace manual labour with mechanised cleaning to improve maintenance of road infrastructure and greenery. The purchase is estimated at Rs 82.8 million (mn), excluding GST. The proposal sets the base price of each machine at about Rs 20.7 million (mn) so four units total Rs 82.8 million (mn) before GST. 18 per cent GST will be applicable separately. During the warranty period each machine will operate ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement