HPCL, BPCL and IOC swing to June-quarter losses as Brent spikes to $125 a barrel
AI Market Summary
A US-Iran conflict drove a sharp risk premium in crude, with Brent spiking near $125/bbl, compressing earnings at India's major oil marketers (HPCL, BPCL, IOC) despite strong refining margins. Elevated feedstock costs and widened LPG under-recoveries pressured marketing profitability and increased earnings volatility. The news underscores geopolitically driven supply-risk sensitivity and near-term instability in downstream margins tied to crude price swings.
Impact level
● High
Affected assets
NCCO1OILBRENT2USD/USDT-0.46%
AI Insight · NCCO1OILBRENT2USD/USDTAI Insight
▲ Bullish
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India’s three state-run oil marketing companies—HPCL, BPCL and IOC—reported losses for the June quarter as Brent crude surged to as high as $125 per barrel after the US-Iran conflict. HPCL posted the steepest loss at ₹11,526 crore, while BPCL and IOC reported losses of ₹3,962 crore and ₹2,661 crore, respectively. Strong refining margins helped cushion the hit from higher crude costs, with BPCL reporting a gross refining margin of $41.4 per barrel. Marketing profitability stayed under pressure, and LPG under-recoveries widened sharply during the quarter.
