IOC, BPCL, HPCL make Rs 69,000 crore net profit in first nine months
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New Delhi. The profit of the three public sector petroleum marketing companies has been more than Rs 69,000 crore in the first nine months of the current financial year, which is much higher than their annual earnings in the years before the oil crisis. Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd. (BPCL) and Hindustan Petroleum Corporate Ltd. HPCL’s net profit in the April-December period of FY 2023-24 is better than the combined annual earnings of Rs 39,356 crore in the years before the oil crisis. This figure has emerged from the information given to the stock markets by these public sector petroleum companies.
Retail petroleum companies have opposed the demand to return to the daily price revision system and pass on the benefit of rate reduction to consumers. They argue that prices remain extremely volatile and their past losses have not been fully recovered. The three companies, which control about 90 per cent of India’s fuel market, have not ‘voluntarily’ made any change in the prices of petrol, diesel and cooking gas (LPG) for almost two years. Due to this, there is loss when the cost of crude oil is high and there is profit when the price of raw material is low.
These oil companies had a combined net loss of Rs 21,201.18 crore during April-September 2022 due to the Russia-Ukraine war. One reason for this was the provision of Rs 22,000 crore in the books but LPG subsidy was not received for the last two years. Subsequently, softening international prices and government’s LPG subsidy helped IOC and BPCL achieve annual profits during 2022-23 (April 2022 to March 2023), but HPCL remained in loss. However, the situation has changed in the current financial year.
All three companies posted record earnings in the first two quarters (April-June and July-September). The reason for this was that international oil prices almost halved to US$72 per barrel compared to a year ago. International prices rose again to US$90 in the subsequent quarter. This reduced his earnings. But, overall they made good profits during the year. IOC posted a net profit of Rs 34,781.15 crore on a standalone basis in the first nine months of the current financial year (April-December 2023). In comparison, the company had earned a net profit of Rs 8,241.82 crore in 2022-23. The IOC may argue that the financial year 2022-23 was affected by the oil crisis. Nine-month earnings are also higher than in pre-crisis years.
The company had a net profit of Rs 24,184 crore in 2021-22 and Rs 21,836 crore in 2020-21. BPCL earned a net profit of Rs 22,449.32 crore in the nine-month period of the current financial year, compared to a loss of Rs 4,607.64 crore in the same period last financial year. This profit is higher than the earnings of Rs 1,870.10 crore in FY 2022-23 and Rs 8,788.73 crore in FY 2021-22. HPCL’s nine-month profit stood at Rs 11,851.08 crore. Whereas it had a loss of Rs 8,974.03 crore in the financial year 2022-23 and a profit of Rs 6,382.63 crore in 2021-22.
The ban on fuel prices is in place from April 6, 2022. Due to that, there was a loss of Rs 17.4 per liter on petrol and Rs 27.7 per liter on diesel in the week ending June 24, 2022. However, this loss was later eliminated by falling crude oil prices. Last month, the margin of all three companies was Rs 11 per liter on petrol and Rs 6 per liter on diesel. ICRA LTD. Girish Kumar Kadam, Senior Vice President and Group Head (Corporate Ratings), said the three oil companies had good operating margins in the first half of FY 2023-24 and recovered the losses incurred during FY 2022-23. “Gross operating profit of oil marketing companies stood at Rs 90,000 crore in the first half of 2023-24, while there was a loss of Rs 14,600 crore in the first half of 2022-23,” he said.
Disclaimer: IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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