Oil marketing companies earned more than 25 times in the financial year 2023-24

Oil marketing companies earned more than 25 times in the financial year 2023-24

According to the Ministry of Petroleum and Natural Gas, the combined profit of OMCs for FY 2023-24 stood at Rs 86,000 crore, 25 times more than the previous financial year. For the full 2023-24 financial year, HPCL reported a record net profit of Rs 16,014 crore, compared to a loss of Rs 6,980 crore in the previous year.

Indian Oil Corporation Limited (IOCL) also celebrated stellar performance by achieving milestones in refinery throughput, sales volumes and net profit during FY 23-24. BPCL's profit after tax for FY 2023-24 increased to Rs 26,673 crore, a significant increase of almost 13 times from the previous financial year.

Additionally, the company's ambitious 'Project Aspire' underlines its commitment to generate substantial long-term value for shareholders with a planned capital outlay of Rs 1.7 lakh crore over 5 years. The Ministry of Petroleum and Natural Gas has announced that despite the challenging geopolitical scenario and volatile crude oil prices, state-owned oil marketing companies (OMCs) have achieved remarkable financial results for the financial year 2023-24.

The ministry said, “The financial year 2023-24 has been excellent for government-owned oil marketing companies (OMCs). They even faced rapidly evolving geopolitics and wide fluctuations in crude oil prices. However, the Ministry expressed concern over some media reports which focused solely on financial comparison of Q4 2024 to Q4 2023, which presented an inaccurate and unfair picture of the overall annual performance of OMCs. Parameters such as all-time best throughput, excellent capital expenditure utilization and completed projects were allegedly ignored, leading to biased portrayal.


Pavita Jones