HPCL reports LPG losses amid rising crude oil prices

Hindustan Petroleum Corporation Limited (HPCL) is experiencing losses of ₹245 per LPG cylinder due to surging crude oil prices. The company expects these losses to increase to ₹327 per cylinder in November. Managing Director Vikas Kaushal attributed the financial strain to geopolitical tensions in West Asia, which have driven oil prices to high levels.

HPCL, along with Indian Oil and Bharat Petroleum Corporation, has been selling domestic cylinders below market prices, leading to a reported ₹500 crore loss from LPG sales in the second quarter. Rising freight costs are also contributing to the pressure, with Suezmax tanker freight increasing from $4 to $9 per barrel since the first quarter.

Despite these challenges, HPCL reported a net profit of ₹3,625.22 crore for the second quarter, a recovery from a significant net loss in the previous quarter. However, annual profit has seen a 6.1% decrease compared to the same period last year.