Oil marketing companies report huge losses on under-recovery
State-owned Hindustan Petroleum Corporation Ltd (HPCL), on Tuesday, reported a net loss of Rs 3,364.48 crore for the quarter ended September 30, (Q2) after the government failed to offer any compensation for the losses it incurred on subsidised fuel sales.
Its net profit in Q2 last year was Rs 2,089.61 crore. The company said that the loss is essentially on account of the under-recoveries (revenue loss) that had to be absorbed.
However, the government has so far not provided any cash subsidy to the fuel retailers for Q2. HPCL and other oil marketing companies currently lose Rs 9.27 per litre of diesel, Rs 26.94 per litre of kerosene sold through the public distribution system (PDS) and Rs 260.50 per 14.2-kg LPG cylinder supplied to domestic households. HPCL’s turnover increased by 30 per cent to Rs 39,114.80 crore in Q2.
HPCL’s petrol sales rose by 7.1 per cent, while its diesel sales increased by 13.2 per cent in the first half vis-a-vis the corresponding period of the previous year.
Another state-owned oil company Bharat Petroleum Corp Ltd (BPCL) reported a net loss of Rs 3,229 crore in Q2 this year as the government failed to offer any compensation for the losses it incurred on fuel sales. The PSU had a net profit of Rs 2,1422.22 crore in Q2 last year.
Its net revenue increased by 19 per cent to Rs 42,281.90 crore from Rs 35,416.19 crore in the prior-year quarter.
