Government oil companies Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL) have suffered huge losses in the first quarter (April-June) of the financial year 2026-27. The biggest reason for this was that due to increasing tension in West Asia, the prices of crude oil increased rapidly, but despite this, companies continued to sell petrol, diesel and LPG at prices below cost for a long time. Although the companies earned good income from the refinery business, the loss in selling fuel completely wiped out this profit. Due to this, both the companies reached losses in this quarter.
HPCL loss of Rs 12,265 crore
HPCL has registered a net loss of Rs 12,265 crore in the June quarter. In the same period last year, the company had made a profit of Rs 4,111 crore. If we look only at the main business of the company, there was a loss of Rs 11,526 crore, whereas a year ago there was a profit of Rs 4,371 crore. However, the total income of the company increased to Rs 1.45 lakh crore, which is about 21 percent more than last year. That means sales increased, but due to increasing costs the company could not get profit.
BPCL suffered a loss of Rs 3,962 crore
BPCL also suffered a loss of Rs 3,962 crore in the April-June quarter. This is the company’s first loss after 15 consecutive quarters. Last year, in the same quarter, BPCL had earned a profit of Rs 6,124 crore. The total income of the company increased to Rs 1.59 lakh crore, whereas last year it was Rs 1.35 lakh crore. That means business increased, but profits could not be saved.
Why was there such a huge loss?
This year, after increased tension in West Asia and developments related to Iran, the prices of crude oil in the international market increased by more than 50 percent. Usually, when crude oil becomes expensive, the prices of petrol and diesel are also increased. But government oil companies did not increase the prices of petrol and diesel for about two and a half months. Later, in the second half of May, the prices of petrol and diesel were increased by more than Rs 7.50 per liter as well as the price of domestic LPG cylinders, but by then the companies had suffered huge losses.
Read this also- Oil caught fire again! Brent crude crosses $95, will it hit a century again?
Leave a Reply