HPCL net tumbles on sharp fall in gross refining margin

Our Bureau New Delhi | Updated on August 07, 2019 Published on August 07, 2019

Mukesh Kumar Surana, CMD, HPCL

Hindustan Petroleum Corporation Ltd (HPCL) on Wednesday said that it may extend the current doorstep delivery facility for diesel to petrol in the coming days.

“We will try to cater to all the segments factoring in both safety and regulation. Right now we have only got approval for diesel but we will definitely work on petrol as well,” Mukesh Kumar Surana, Chairman and Managing Director, HPCL, said at a press conference here..

Currently, the door delivery facility for diesel is available in certain areas of Maharashtra. However, it is available only for stationary vehicles like cranes. The door delivery is done through a truck which has a diesel dispenser.

Q1 results

Meanwhile, HPCL has reported a consolidated net profit of ₹877 crore for the quarter ended June 30, compared to ₹1,988 crore during the same quarter in the last fiscal.

The total income of the company stood at ₹75,472 crore (₹73,564 crore).

The combined Gross Refining Margin (GRM) for the quarter under review sharply reduced to $0.75 per barrel compared to $7.15 per barrel in the same quarter last fiscal.

“The decrease in profit is due to sharp decline in crude prices in the month of May and June 2019 leading to inventory losses both at refinery and marketing, and also lower average cracks for all products except for LPG and fuel oil, Reduced throughput at refineries due to planned shutdown has also impacted profits,” Surana said.

There was a shutdown of two refineries in Mumbai for a period of 23 days in the month of April. There is no plan to shutdown any Crude Distillation Unit (CDU) for Mumbai refinery this year, he said.

Published on August 07, 2019
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