State-owned fuel retailers report record Rs 81,000 crore profit in FY24

OMCs record profit: Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) have collectively announced a staggering profit of approximately Rs 81,000 crore for fiscal year 2023-24. exceptional financial performance surpasses ir earnings in pre-oil crisis years, as per regulatory filings.

During April 2023 to March 2024, three companies recorded ir highest-ever standalone and consolidated net profits. Despite calls to revert to daily price revisions, y maintained stable rates, citing extreme volatility in oil prices. decision enabled m to recoup losses incurred during periods of higher input costs.

In FY24, IOC reported a standalone net profit of Rs 39,618.84 crore, a substantial increase from previous fiscal year's earnings. company's robust performance underscores its resilience amid challenging market conditions.

losses incurred in FY23 prompted government to allocate Rs 30,000 crore to support energy transition plans of IOC, BPCL, and HPCL. However, this support was later halved to Rs 15,000 crore, with promised equity infusion yet to materialise.

Despite initial losses, subsequent softening of international oil prices, coupled with government subsidies, bolstered financial outlook of IOC and BPCL. In FY24, favourable market conditions contributed to record profits for all three entities.

fuel price freeze implemented in April 2022 initially incurred substantial losses but was later offset by declining oil prices. International oil markets witnessed significant fluctuations, with prices climbing to a 14-year high before subsequently declining due to geopolitical tensions and economic uncertainties.

(With PTI inputs)