Under-recoveries push HPCL, BPCL into losses

Under-recoveries from selling petrol, diesel, and LPG below market rates since the US-Iran war pushed HPCL and BPCL into losses in Q1 FY2026-27.

HPCL reported a consolidated loss of Rs 12,265 crore for April-June 2026, compared to a profit of Rs 4,111 crore a year earlier, with an LPG under-recovery of Rs 3,607 crore.

BPCL posted a consolidated loss of Rs 1,873 crore, down from a profit of Rs 6,839 crore in the same quarter last year, and recorded an LPG under-recovery of Rs 3,485 crore.

Global crude prices surged over 70% at the peak of the US-Iran conflict, while HPCL and BPCL kept petrol and diesel prices unchanged, only raising them by nearly Rs 7.5 per litre and LPG by Rs 89 per cylinder in late May, which was insufficient.