Under-recoveries push HPCL, BPCL into losses

The profitability of both HPCL and BPCL was hit as they kept petrol and diesel prices unchanged despite global crude prices surging more than 70% at the peak of the US-Iran conflict.The OMCs subsequently raised petrol and diesel prices by nearly Rs 7.5 a litre and the price of a 14.2-kg domestic LPG cylinder by Rs 89 in the second half of May, but the increases were insufficient to offset the sharply higher input costs.While HPCL’s revenue from operations rose 21% to Rs 1.5 lakh crore from Rs 1.2 lakh crore a year earlier, BPCL’s revenue increased to Rs 1.6 lakh crore from Rs 1.3 lakh crore in the year-ago period. In a statement, HPCL said its performance reflected the impact of the ongoing West Asia crisis even as its refining and marketing operations remained resilient.