Updated May 12th, 2024 at 12:21 IST

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

In FY24, IOCL reported a standalone net profit of Rs 39,618.84 crore, a substantial increase from the previous fiscal year's earnings.

Reported by: Business Desk
During FY24 the three companies recorded their highest-ever net profit. | Image:Pexels
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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 the fiscal year 2023-24. The exceptional financial performance surpasses their earnings in pre-oil crisis years, as per regulatory filings.

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

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

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

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

The 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.

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(With PTI inputs)
 

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Published May 12th, 2024 at 12:21 IST