InvestorQ : How did the 3 OMCs like IOCL, BPCL and HPCL end up with such huge losses of Rs18,500 crore in the June quarter?
Sam Eswaran made post

How did the 3 OMCs like IOCL, BPCL and HPCL end up with such huge losses of Rs18,500 crore in the June quarter?

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Moii Chavate answered.
1 month ago
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For the June 2022 quarter; the 3 downstream oil companies viz. Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) reported combined net loss of Rs18,480 crore. That is a huge net loss in a quarter where the refining margins or the GRM on refining had touched record levels. The villain of the piece in the quarter was the deeply negative marketing margins as oil market companies were selling petrol and diesel well below the applicable cost to them, leading to huge losses.

While all the downstream oil companies reported robust gross refining margins (GRMs) in the range of $20-$30/bbl, this was more than offset by the negative marketing margins. This resulted in losses for all the 3 downstream oil companies. However, the extent of losses differed. HPCL and BPCL accounted for 90% of these losses due to a predominance of oil marketing. However, IOCL which is predominantly an oil refiner, reported net losses of just about Rs1,995 crore for the June 2022 quarter, as strong GRMs helped them better.

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