State-Owned Fuel Retailers Rake in Record Profits in FY24, Surpass Pre-Crisis Levels

14 May 2024

Indian Oil Corporation, Bharat Petroleum Corporation Ltd., and Hindustan Petroleum Corporation Ltd., three state-owned fuel retailers announced record profits in FY24 of roughly Rs 81,000 crore, far exceeding their yearly earnings in the years prior to the oil crisis. According to their regulatory filings, the combined standalone net profit of IOC, BPCL, and HPCL from April 2023 to March 2024 (FY24) exceeded their yearly earnings of Rs 39,356 crore in the years prior to the oil crisis.

In FY24, all three companies achieved their highest ever standalone and consolidated net profit. The retailers have resisted calls to revert to daily price revision and offer a reduction in rates to consumers, citing that prices remain highly volatile, fluctuating on one day and falling on another, and that they needed to recuperate losses incurred during the year when they maintained rates below cost.

According to the company's regulatory filing, IOC reported a standalone net profit of Rs 39,618.84 crore for the 2023–2024 fiscal years. This is contrasted with the yearly net profit of Rs 8,241.82 crore for 2022–2023. The company may contend that the oil crisis affected FY23, but FY24 earnings—which include a net profit of Rs 24,184 crore in 2021–22 and Rs 21,836 crore in 2020–21—are higher than even the pre-crisis years.

BPCL achieved a net profit of Rs 26,673.50 crore in FY24, which was significantly higher than the earned profit of Rs 1,870.10 crore in 2022–23 and Rs 8,788.73 crore in FY22. HPCL's 2023–24 profit of Rs 14,693.83 crore is lower than its loss of Rs 8,974.03 crore in FY23 and its profit of Rs 6,382.63 crore in 2021–22, as per the filings.