Petrol, diesel price freeze: This oil marketing company lost ₹10,196 crore
Hindustan Petroleum Corporation Ltd (HPCL) on Saturday reported that it lost a total of ₹10,196.96 crore due to the downward price revision and freezing of price for petrol and diesel. The oil marketing company has claimed that it registered a loss during April-June compared with a net profit of ₹1,795 crore in the same period a year back.
During this quarter, HPCL and other state-owned fuel retailers Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Ltd (BPCL) did not revise petrol and diesel prices in line with rising costs to help the government contain runaway inflation, reports PTI. Because of the freeze, IOC too reported a net loss of ₹1,992.53 crore for the June quarter.
Loss for IOC, which is nearly double the size of HPCL, was lower as it had vast oil refining and petrochemical businesses to offset some of the losses on fuel marketing, claims the report. HPCL on the other hand sells more fuel than it produces. To meet nearly one-fourth of the market that it controls, it has to buy petrol, diesel and LPG from refineries, who would sell the fuel at market price and not subsidised rates.
HPCL revenue from the sale of products soared to ₹1.21 lakh crore in the first quarter of the current fiscal year that began on April 1 from ₹77,308.53 crore a year back. This is primarily because of the higher cost of oil in the international market. This comes as the biggest quarterly loss that HPCL has ever incurred.