HPCL's Profit Surges Amidst Frozen Fuel Prices

Hindustan Petroleum Corporation Ltd (HPCL) reported a significant rise in its December quarter net profit, driven by increased marketing margins despite a retail fuel price freeze. The company's pre-tax earnings surged due to stable petrol and diesel prices and operational efficiencies, while government subsidies have yet to materialize.

Hindustan Petroleum Corporation Ltd (HPCL) made headlines on Thursday by announcing a dramatic increase in net profit for the December quarter, as marketing margins soared despite a freeze on retail fuel prices.

From October to December 2024, HPCL's consolidated net profit climbed to Rs 2,543.65 crore, a stark rise from Rs 712.84 crore during the corresponding quarter of the previous fiscal year. This earnings surge came despite the company facing under-recoveries on domestic LPG sales, which so far lack governmental subsidy coverage.

Key to this profitability was HPCL's strategic decision to maintain petrol and diesel prices stable despite fluctuating international crude oil rates, alongside notable operational efficiencies and increased crude processing. The company is yet to see the government's promised subsidy support materialize, impacting its domestic LPG sales margins.

(With inputs from agencies.)