BPCL in deep red with Rs 677-cr loss

OIL marketing major Bharat Petroleum’s loss for the quarter ended June widened 57% to Rs 677 crore, thanks to the government’s reluctance to increase oil prices amidst surging crude prices. The company recorded a 35% rise in net sales to Rs 21,615 crore, while physical sales climbed 7.4% to 5.76m tonne.

BPCL shares rose 0.45% to Rs 311.45 on relief that the loss was not as big as expected. BPCL recorded a gross refining margin of $4.70/barrel against $5.41/bbl during the first quarter last year.

However, production from the refinery was also higher as the company has recently expanded the capacity of its Mumbai oil refinery. On the retail side, the increase in volumes has come from a jump of 40% in sales of aviation fuel and 11% in retail sales of diesel.