New Delhi: State-owned fuel retailers Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd reported bumper profits of nearly Rs 81,000 crore in FY24, surpassing their annual earnings in the pre-oil crisis years. is much more than.
The combined standalone net profit of IOC, BPCL and HPCL in April 2023 to March 2024 (FY24) was better than their annual earnings of Rs 39,356 crore in the years before the OI crisis, regulatory filings by them showed.
All three companies posted highest-ever standalone and consolidated net profits in FY24. Retailers have resisted calls to return to daily price revisions and pass on rates to consumers on the grounds that prices remain highly volatile - rising one day and falling the next - and they need to recoup the losses they incurred in the year when they kept rates below cost.
IOC posted a standalone net profit of Rs 39,618.84 crore in 2023-24, according to the company's regulatory filing. This compares with an annual net profit of Rs 8,241.82 crore in 2022-23.While the company may argue that FY23 was affected by the oil crisis, FY24 earnings are higher than the pre-crisis years – a net profit of Rs 24,184 crore in 2021-22 and Rs 21,836 crore in 2020-21.
BPCL posted a net profit of Rs 26,673.50 crore in FY24, up from Rs 1,870.1 crore in FY23 and Rs 8,788.73 crore in FY22. According to the filing, HPCL's profit for 2023-24 is Rs 14,693.83 crore, while it has a loss of Rs 8,974.03 crore in FY23 and a profit of Rs 6,382.63 crore in FY2021-22. Due to the loss in FY23, Finance Minister Nirmala Sitharaman Announced Rs 30,000 crore for IOC, BPCL and HPCL in its Budget of 2024 to support their energy transition plans. In the middle of the year, that support was halved to Rs 15,000 crore.The support that was to be provided by way of equity investment through rights issue has not been given yet.
The three companies, which 'voluntarily' control about 90 per cent of India's fuel market, have kept prices of petrol, diesel and cooking gas (LPG) unchanged for the last two years, resulting in higher prices when input costs were higher. So there was a loss and there was a profit when the prices of raw materials increased. were lower.
They reported a combined net loss of Rs 21,201.18 crore during April-September 2022, while Rs 22,000 crore was declared but LPG subsidy was not paid for the last two years. This was followed by softening international prices and the government The LP subsidy provided by HPCL helped IOC and BPCL earn annual profits for 2022-23 (April 2022 to March 2023), but HPCL remained in loss.
In FY24, things have changed dramatically.All three companies reported record earnings in the first two quarters (April–June and July–September), while international oil prices – against which domestic rates are benchmarked – nearly halved from a year earlier to US$72 a barrel. .
International prices rose again to US$90 in the next quarter, reducing his earnings. But, they made handsome profits for the full year. Stabilization of fuel prices that began on April 6, 2022, led to a loss of Rs 17 per liter on petrol and Rs 27.7 per liter on diesel for the week ending June 24, 2022. However, losses were wiped out due to subsequent softening.And in mid-March, he cut petrol and diesel prices by Rs 2 per liter just before the general elections were announced.
International oil prices have been volatile over the past few years. I went into negative territory at the start of the pandemic in 2020 and declined wildly in 2022 – climbing to a 14-year high of around US$140 per barrel in March 2022 after Russia invaded Ukraine, heading to top importer China. before slipping due to weak demand from the US and concerns of an economic contraction.
But for a country that is 85 percent dependent on imports, a hike would mean increasing already high levels of inflation and derailing the economy's recovery from the pandemic. So the three fuel retailers have been struggling for a long time over the past two decades. Till now the prices of petrol and diesel remained stable.He halted daily price revisions in early November 2021, when rates across the country reached an all-time high, prompting the government to roll back a portion of the excise duty hike during the pandemic to take advantage of lower oil prices. Was forced to take.
The moratorium continued until 2022, but a war-induced spike in international oil prices led to petrol and diesel prices rising by Rs 10 per liter from mid-March 2022, before another round of excise duty cuts. All prices of Rs 13 per liter were withdrawn. During the pandemic, the tax on petrol and diesel was increased by Rs 16 per liter. After this, the decline in the current price which started on April 6, 2022 continued till March 15. After this the rates have fallen again.
The combined standalone net profit of IOC, BPCL and HPCL in April 2023 to March 2024 (FY24) was better than their annual earnings of Rs 39,356 crore in the years before the OI crisis, regulatory filings by them showed.
All three companies posted highest-ever standalone and consolidated net profits in FY24. Retailers have resisted calls to return to daily price revisions and pass on rates to consumers on the grounds that prices remain highly volatile - rising one day and falling the next - and they need to recoup the losses they incurred in the year when they kept rates below cost.
IOC posted a standalone net profit of Rs 39,618.84 crore in 2023-24, according to the company's regulatory filing. This compares with an annual net profit of Rs 8,241.82 crore in 2022-23.While the company may argue that FY23 was affected by the oil crisis, FY24 earnings are higher than the pre-crisis years – a net profit of Rs 24,184 crore in 2021-22 and Rs 21,836 crore in 2020-21.
BPCL posted a net profit of Rs 26,673.50 crore in FY24, up from Rs 1,870.1 crore in FY23 and Rs 8,788.73 crore in FY22. According to the filing, HPCL's profit for 2023-24 is Rs 14,693.83 crore, while it has a loss of Rs 8,974.03 crore in FY23 and a profit of Rs 6,382.63 crore in FY2021-22. Due to the loss in FY23, Finance Minister Nirmala Sitharaman Announced Rs 30,000 crore for IOC, BPCL and HPCL in its Budget of 2024 to support their energy transition plans. In the middle of the year, that support was halved to Rs 15,000 crore.The support that was to be provided by way of equity investment through rights issue has not been given yet.
The three companies, which 'voluntarily' control about 90 per cent of India's fuel market, have kept prices of petrol, diesel and cooking gas (LPG) unchanged for the last two years, resulting in higher prices when input costs were higher. So there was a loss and there was a profit when the prices of raw materials increased. were lower.
They reported a combined net loss of Rs 21,201.18 crore during April-September 2022, while Rs 22,000 crore was declared but LPG subsidy was not paid for the last two years. This was followed by softening international prices and the government The LP subsidy provided by HPCL helped IOC and BPCL earn annual profits for 2022-23 (April 2022 to March 2023), but HPCL remained in loss.
In FY24, things have changed dramatically.All three companies reported record earnings in the first two quarters (April–June and July–September), while international oil prices – against which domestic rates are benchmarked – nearly halved from a year earlier to US$72 a barrel. .
International prices rose again to US$90 in the next quarter, reducing his earnings. But, they made handsome profits for the full year. Stabilization of fuel prices that began on April 6, 2022, led to a loss of Rs 17 per liter on petrol and Rs 27.7 per liter on diesel for the week ending June 24, 2022. However, losses were wiped out due to subsequent softening.And in mid-March, he cut petrol and diesel prices by Rs 2 per liter just before the general elections were announced.
International oil prices have been volatile over the past few years. I went into negative territory at the start of the pandemic in 2020 and declined wildly in 2022 – climbing to a 14-year high of around US$140 per barrel in March 2022 after Russia invaded Ukraine, heading to top importer China. before slipping due to weak demand from the US and concerns of an economic contraction.
But for a country that is 85 percent dependent on imports, a hike would mean increasing already high levels of inflation and derailing the economy's recovery from the pandemic. So the three fuel retailers have been struggling for a long time over the past two decades. Till now the prices of petrol and diesel remained stable.He halted daily price revisions in early November 2021, when rates across the country reached an all-time high, prompting the government to roll back a portion of the excise duty hike during the pandemic to take advantage of lower oil prices. Was forced to take.
The moratorium continued until 2022, but a war-induced spike in international oil prices led to petrol and diesel prices rising by Rs 10 per liter from mid-March 2022, before another round of excise duty cuts. All prices of Rs 13 per liter were withdrawn. During the pandemic, the tax on petrol and diesel was increased by Rs 16 per liter. After this, the decline in the current price which started on April 6, 2022 continued till March 15. After this the rates have fallen again.
