NEW DELHI: The impact of under-recovery triggered by surge in crude oil prices due to the West Asia war was reflected in the financial results of state-owned oil marketing companies (OMCs), with Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation Limited (BPCL) posting losses in the April-June quarter of the 2026-27 financial year.
HPCL reported a consolidated loss of Rs 12,265 crore in the first quarter, compared with a profit of Rs 4,111 crore a year earlier. It also recorded an under-recovery of Rs 3,607 crore on LPG. BPCL posted a consolidated loss of Rs 1,873 crore, against a profit of Rs 6,839 crore in the corresponding quarter of the previous fiscal. The company booked an under-recovery of Rs 3,485 crore on LPG sales during the quarter. Indian Oil Corporation is yet to announce its financial results.
The profitability of both HPCL and BPCL was hit as they kept petrol and diesel prices unchanged despite global crude prices surging more than 70% at the peak of the US-Iran conflict.The OMCs subsequently raised petrol and diesel prices by nearly Rs 7.5 a litre and the price of a 14.2-kg domestic LPG cylinder by Rs 89 in the second half of May, but the increases were insufficient to offset the sharply higher input costs.While HPCL’s revenue from operations rose 21% to Rs 1.5 lakh crore from Rs 1.2 lakh crore a year earlier, BPCL’s revenue increased to Rs 1.6 lakh crore from Rs 1.3 lakh crore in the year-ago period. In a statement, HPCL said its performance reflected the impact of the ongoing West Asia crisis even as its refining and marketing operations remained resilient.
