NEW DELHI: The impact of weak recovery caused by rising crude oil prices due to the West Asian war has been reflected in the financial results of state-owned oil marketing companies (OMCs), with Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation Limited (BPCL) recording losses in the April-June quarter of the financial year 2026-27.HPCL reported a consolidated loss of Rs 12,265 crore in the first quarter, compared to a profit of Rs 4,111 crore in the previous year. It also recorded a recovery shortfall 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 from LPG sales during the quarter. The Indian Oil Company has not yet announced its financial results.
The profitability of both HPCL and BPCL was hit, as they kept petrol and diesel prices unchanged despite a rise in global crude oil prices of more than 70% at the height of the US-Iran conflict.Oil companies then hiked petrol and diesel prices by about Rs 7.5 per liter and the price of a 14.2 kg domestic LPG cylinder by Rs 89 in the second half of May, but the increases were not enough to offset sharply higher input costs.While HPCL’s revenue from operations rose 21% to Rs 1.5 lakh crore from Rs 1.2 lakh crore in the previous year, BPCL’s revenue increased to Rs 1.6 lakh crore from Rs 1.3 lakh crore in the same period last year. HPCL said in a statement that its performance reflects the impact of the ongoing West Asia crisis even as its refining and marketing operations remain resilient.