What were BPCL's refining margins in Q1 FY26?

BPCL earned $4.88 in turning every barrel of crude oil into fuels like petrol and diesel, which was better than the $2.15 per barrel gross refining margin of IOC and the $3.08 of HPCL.

How did BPCL's fuel sales per pump compare to its rivals?

At 153 kilolitre per month, BPCL sold more fuel per pump than its other public sector rivals, with IOC having a throughput of 130 kl per retail outlet in Q1.

How did the LPG subsidy impact the fuel retailers' profits?

While the government announced a ₹30,000 crore subsidy to cover the losses the three firms suffered on selling cooking gas at rates lower than their cost, the modalities of payments are yet to be announced. In the absence, the three booked losses on LPG - ₹3,719 crore by IOC, ₹2,076 crore by BPCL and ₹2,148 crore by HPCL.

Home / Business and Economy / India's Fuel Retailers Post Bumper Profits Amid Price Freeze

India's Fuel Retailers Post Bumper Profits Amid Price Freeze

24 Aug

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Summary

State-owned fuel retailers report over 2.5x higher profits year-on-year
BPCL leads with ₹6,124 crore profit, surpassing IOC and HPCL
Retailers earn ₹10.3/liter margin on petrol and ₹8.2/liter on diesel

India's Fuel Retailers Post Bumper Profits Amid Price Freeze

In the first quarter of the 2025-26 fiscal year, India's state-owned fuel retailers—Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL)—have reported a combined profit of ₹16,184 crore. This figure is more than two-and-a-half times higher than the same period last year.

Among the three, BPCL led the pack with a ₹6,124 crore profit, surpassing IOC's ₹5,689 crore despite being nearly half its size. HPCL posted a net profit of ₹4,371 crore in the quarter. The bumper earnings were driven by the retailers' ability to maintain retail prices despite a 21% drop in input crude oil prices and a 16-18% reduction in benchmark international fuel rates. This allowed them to earn an estimated ₹10.3 per liter margin on petrol and ₹8.2 per liter on diesel, up from ₹4.4 and ₹2.5 respectively a year earlier.

The extraordinary marketing margins helped offset inventory losses that arose from the fall in crude oil prices between the time it was procured and turned into fuel for sale. IOC alone booked an inventory loss of ₹6,465 crore in the June quarter, while HPCL had a loss of about ₹2,000 crore.

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