Three oil refining PSU reports Rs 69,000 crore net profit in Previous 9 months, exceeding annual earnings

Public sector Oil major companies have reported a consolidated profit of over Rs 69,000 crore in the period of April-December which concurrently exceeded the annual earnings of the same worth Rs 39,356 crore in pre-oil crisis year. The profit is estimated for the IOCL, BPCL, and HPCL, together.

The three companies control over 90 percent of India’s fuel market and form the major portion of energy revenue generation in the country. The companies all together have posted healthy operating margins in H1FY24 recouping the losses that happened in the last fiscal year. The aggregate operating profitability of the OMCs was Rs 90,000 crore in H1FY24 against a loss of Rs 14,600 crore in H1FY23.

 

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International crude oil prices have been seen in turmoil due to escalating West and Middle East conflicts packed with Russia-Ukraine geopolitical tensions reaching a 14-year high of nearly $140 per barrel in March 2022. The fuel retailers froze petrol and diesel prices for the longest duration in the last two decades which continued into 2022 but in the wake of the escalating war situation the international oil prices prompted a Rs 10 per litre hike in petrol and diesel prices from mid-March 2022.

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The fuel price freeze was subject to loss as high as Rs 17.4 per liter of petrol and Rs 27.7 per liter of diesel in the June –end. The PSU oil firm BPCL had alone posted a net profit of Rs 22,449.32 crore in the 9- 9-month period of the current fiscal. While HPCL gained a nine-month high of Rs 11,851.08 crore as compared to a loss of Rs 6,382.63 crore in 2021-22. Meanwhile, IOCL in the first nine months of FY24 has posted a profit of Rs 34,781.15 crore as per the company's official data.

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