BPCL Reports Sharp Drop in Q1 Profits Amid Fuel Price Cuts and Stable Crude Rates

State-owned Bharat Petroleum Corporation Ltd (BPCL) reported a significant 73% decline in net profit for the June quarter compared to the same period last year. Reduced refinery margins and a pre-election fuel price reduction contributed to the drop. Revenue from operations remained relatively constant at Rs 1.28 lakh crore.

State-owned Bharat Petroleum Corporation Ltd (BPCL) reported a 73% decline in net profit for the June quarter, attributed to reduced refinery margins and a fuel price cut ahead of elections.

The company posted a consolidated net profit of Rs 2,841.55 crore compared to Rs 10,644.30 crore in the same period last year. BPCL had previously gained from holding petrol and diesel prices steady despite decreasing costs, but those gains eroded with a Rs 2 per litre cut in fuel prices pre-election.

Refinery margins shrank from the highs seen in 2022-23, while crude oil prices remained stable at USD 82-85 per barrel. BPCL's gross refining margin fell to USD 7.86 per barrel, down from USD 12.64 per barrel last year, with refinery throughput remaining nearly unchanged at 10.11 million tonnes. Market sales saw a slight increase to 13.16 million tonnes, compared to 12.75 million tonnes in April-June 2023. Revenue from operations stood at Rs 1.28 lakh crore.

(With inputs from agencies.)