Daijiworld Media Network - Mumbai

Mumbai, Aug 24: India’s top state-owned fuel retailers — Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) — have posted a combined net profit of Rs 16,184 crore for Q1 FY26, marking a 2.5x surge over the same period last year, largely driven by robust petrol and diesel marketing margins.

BPCL led the pack with a record Rs 6,124 crore profit, overtaking the much larger IOC, which earned Rs 5,689 crore. HPCL followed with Rs 4,371 crore in net earnings.

BPCL also reported the highest refining margins at $4.88 per barrel, supported by superior operational efficiency — running its refineries at 118% capacity. In comparison, IOC and HPCL operated at 107% and 109% respectively, with refining margins of $2.15 and $3.08 per barrel.

Marketing margins were a key profit driver. Despite no change in retail prices, the companies benefited from a significant drop in crude and global fuel prices. ICICI Securities noted that margins rose to ?10.3/litre for petrol (from Rs 4.4/litre a year ago) and Rs 8.2/litre for diesel (from Rs 2.5/litre).

While falling crude prices triggered inventory losses — IOC reported a Rs 6,465 crore loss and HPCL about Rs 2,000 crore — higher marketing margins more than made up for it. Adjusted for these losses, IOC’s actual refining margin would have been $6.91 per barrel, more than double last year’s $2.84.

BPCL also saw better fuel throughput at retail pumps, averaging 153 kilolitres/month per outlet, ahead of IOC’s 130 kl.

The strong Q1 performance underscores how strategic pricing and operational efficiency have bolstered oil PSUs’ profitability, even amid global price volatility.