Bharat Petroluem Will Not Be Privatized: Govt


Mohul Ghosh

Mohul Ghosh

Jun 12, 2024


Union Minister for Petroleum & Natural Gas, Hardeep Singh Puri, announced on Tuesday that plans to privatize Bharat Petroleum Corporation Ltd (BPCL) have been put on hold. In an interview with BT TV, Puri explained that high revenue-generating public sector undertakings, like BPCL, do not need to be sold.

“BPCL has made more money in the first three quarters than the stake sale amount,” Puri remarked, as he took charge of the Petroleum and Natural Gas ministry. BPCL reported a net profit of over Rs 19,000 crore in the first half of the financial year 2024.

Financial Performance

In the third quarter of FY2024, BPCL reported an 82% increase in its consolidated net profit, reaching Rs 3,181.42 crore compared to Rs 1,747.01 crore in the same period the previous year. Revenue from operations was Rs 1.30 lakh crore in Q3 FY24, slightly down from Rs 1.33 lakh crore a year earlier. Total expenses decreased to Rs 1.26 lakh crore in the October-December period of fiscal year 2024, compared to Rs 1.31 lakh crore in the same quarter last fiscal year.

On May 9, 2024, BPCL announced a consolidated net profit of Rs 4,789.57 crore for the fourth quarter of FY2023-24, marking a 30% decline from the previous year’s profit of Rs 6,870.47 crore. This dip in profit was attributed to weakening margins and volatile crude oil prices. Additionally, BPCL, along with other oil marketing companies, had reduced diesel and petrol prices by Rs 2 per liter in mid-March, impacting the company’s margins. Revenue from operations slightly declined to Rs 1.32 lakh crore for the quarter ended March 31, compared to Rs 1.33 lakh crore in the previous year.

Previous Privatization Plans

The privatization of BPCL was part of the NDA government’s disinvestment program for FY22, alongside Air India. BPCL, India’s second-largest oil marketing company, has refineries in Mumbai, Kochi, and Madhya Pradesh, giving it the third-largest refining capacity after Reliance and Indian Oil. The government planned to sell its entire 52.98% stake in BPCL, expected to fetch approximately Rs 45,000 crore. Expression of Interest (EoI) for the sale was invited in March 2020, with an initial target to complete the process by March 2021. Although global majors like Saudi Aramco, Abu Dhabi National Oil Co, and Exxon Mobil showed initial interest, none submitted bids to purchase the state-owned refiner.

Expansion Plans

BPCL is currently planning to establish a new 12 million metric tonnes per annum (MMTPA) refinery, as reported by the Economic Times. The project will involve an investment of around Rs 50,000 crore, with potential locations being assessed in Andhra Pradesh, Uttar Pradesh, and Gujarat. Over the next five years, BPCL plans to invest Rs 1.7 trillion in oil refining, fuel marketing, petrochemicals, and clean energy. This includes Rs 75,000 crore for refineries and petrochemicals, Rs 8,000 crore for pipelines, and over Rs 20,000 crore for marketing.


Mohul Ghosh
Mohul Ghosh
  • 1791 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online