State-owned oil marketing companies Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) slipped into losses in the first quarter of FY27 after the prolonged West Asia crisis sent crude oil prices soaring and forced them to sell petrol, diesel and domestic LPG below cost. While HPCL’s net loss hit Rs 11,526 crore, BPCL reported a net loss of Rs Rs 3,962.13 crore during the quarter.
The April-June quarter witnessed sharp volatility in global crude prices, with benchmark oil touching nearly $125 per barrel at the peak of the conflict. Although retail prices of petrol and diesel were later increased by more than Rs 7.50 per litre and domestic LPG prices by Rs 89 per 14.2-kg cylinder, the hikes were not sufficient to offset the higher input costs incurred during the crisis. According to government estimates, OMCs incurred total under-recoveries of Rs 75,000 crore during the Iran crisis.
HPCL posted a net loss of Rs 11,526.41 crore in the June quarter, against a profit of Rs 4,575.87 crore in the corresponding period last year and Rs 4,901.50 crore in the preceding January-March quarter. Despite reporting a robust gross refining margin (GRM) of $23.80 per barrel during the quarter, compared with $3.08 per barrel a year earlier, HPCL said heavy losses on fuel marketing eroded its profitability. HPCL reported an LPG under-recovery of Rs 3,607.25 crore during the quarter. It also said unpaid LPG subsidy dues stood at Rs 12,798.67 crore as of March 31, 2026.
Its revenue from operations increased to Rs 1.44 lakh crore during April-June from Rs 1.19 lakh crore a year earlier.
BPCL reported a consolidated net loss of Rs 3,962.13 crore for the first quarter of FY27, compared with a profit in the corresponding period last year. Its revenue from operations rose 23% year-on-year to Rs 1.59 lakh crore from Rs 1.30 lakh crore, driven by higher fuel prices. However, the increase in revenue was insufficient to offset losses caused by suppressed marketing margins and under-recoveries on LPG sales. The company reported an LPG under-recovery of Rs 3,485.22 crore during the June quarter. It also said unpaid LPG subsidy dues stood at Rs 12,318.52 crore as of March 31, 2026.
