India's state oil marketers BPCL and HPCL post huge Q1 losses amid West Asia crisis

State‑owned Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) reported steep first‑quarter losses for FY 27. BPCL posted a consolidated net loss of Rs 3,962 crore, its first loss in 15 quarters, while HPCL recorded a net loss of Rs 11,526 crore.

Both companies cited soaring global crude prices driven by the West Asia conflict, which pushed Brent crude above $100 per barrel. Although refining margins improved, fuel‑marketing margins turned strongly negative as the firms kept retail petrol, diesel and LPG prices below cost for several weeks. Under‑recoveries on LPG subsidies added roughly Rs 75,000 crore to the OMCs' losses.

Revenue rose over 20 % year‑on‑year—HPCL to about Rs 1.44 lakh crore and BPCL to Rs 1.59 lakh crore—thanks to higher fuel prices, but the gains were insufficient to offset the higher input costs and limited price adjustments. The government has not signaled further retail‑price cuts despite recent crude‑price declines.