HPCL Faces Rising Losses on LPG Cylinders
Mumbai, October 25: Hindustan Petroleum Corporation Limited (HPCL) is currently facing a loss of ₹245 on each LPG cylinder due to soaring crude oil prices. The company anticipates that this loss could escalate to ₹327 per cylinder in November. HPCL’s Managing Director, Vikas Kaushal, attributed the losses to ongoing geopolitical tensions in West Asia, which have driven crude oil prices to unprecedented levels, impacting oil marketing companies significantly.
In the second quarter, HPCL reported a staggering loss of ₹500 crore from LPG cylinder sales. The company, along with Indian Oil and Bharat Petroleum Corporation, has been selling domestic cylinders below market prices, resulting in substantial financial strain.
Additionally, rising freight costs are compounding the challenges for these companies. The cost of Suezmax tanker freight has surged to $9 per barrel, up from $4 per barrel in the first quarter. In light of these circumstances, HPCL is considering emergency procurement strategies to mitigate further losses.
In its recent quarterly results, HPCL disclosed a net profit of ₹3,625.22 crore for the second quarter, a significant recovery from a net loss of ₹12,264.67 crore in the previous quarter. However, the company’s annual profit has decreased by 6.1% compared to the same quarter last year, when it reported a profit of ₹3,859 crore after tax. Revenue from operations saw a 26.1% increase, reaching ₹139,140 crore, compared to ₹110,323 crore in the previous year.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
