HPCL's Profit Soars Amid Fuel Price Freeze

Hindustan Petroleum Corporation Ltd (HPCL) reported a substantial rise in net profit for the December quarter, reaching Rs 2,543.65 crore. The boost in profits was attributed to higher marketing margins despite a freeze in retail fuel prices and under-recovery on domestic LPG sales. Operations revenue remained stable.

Hindustan Petroleum Corporation Ltd (HPCL) recorded a remarkable increase in its net profit for the December quarter, with earnings tripling to Rs 2,543.65 crore. This surge was driven by escalated marketing margins, even as retail fuel prices were kept on hold.

The state-owned oil company, a key player alongside Indian Oil Corporation Ltd (IOC) and Bharat Petroleum Corporation Ltd (BPCL), held steady on petrol and diesel rates despite declining international oil prices. This strategy helped alleviate prior losses due to elevated crude costs.

Despite unchanged income from operations, HPCL faced a significant under-recovery of approximately Rs 3,100 crore on government-regulated LPG sales. However, government subsidy support has yet to be received. Meanwhile, fuel sales volumes and crude processing rose, underpinning the company's improved financial performance.

(With inputs from agencies.)