Now Reading: ONGC, Oil India, GAIL profits surge; IOC posts loss
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ONGC, Oil India, GAIL profits surge; IOC posts loss
India's state-owned oil companies posted mixed results for the June quarter. Upstream firms ONGC, Oil India, and GAIL more than doubled their profits, riding on higher crude prices and stronger realisations. But…
The Story in Brief
India's state-owned oil companies posted mixed results for the June quarter. Upstream firms ONGC, Oil India, and GAIL more than doubled their profits, riding on higher crude prices and stronger realisations. But marketing firms Indian Oil, HPCL, and BPCL reported net losses as they held retail fuel prices steady despite rising global crude.
ONGC's standalone net profit surged 112% to Rs 17,034 crore. Oil India's consolidated profit rose 97% to Rs 4,027 crore, the company said. GAIL's profit doubled to Rs 4,292 crore. Indian Oil posted a loss of Rs 2,661 crore. HPCL lost Rs 12,265 crore and BPCL Rs 3,962 crore, the companies said.
The Indian Opinion
The narrative of efficient upstream firms versus loss-making OMCs misses the policy context. ONGC's profit surge is largely price-driven, not production-driven, its output actually fell. OMCs are absorbing global shocks as designed, but the government has not allowed retail price hikes to protect voters. The sustainability of this approach will be tested if crude stays high or if the government allows a pass-through. Watch for any retail fuel price revision in the coming months.
Sources (5): thehindubusinessline.com, ndtvprofit.com, rediff.com, thehindu.com, thehindu.com (2)
This story was synthesised by AI from the 5 sources linked above.
Updated: this story now draws on 5 sources.
