HPCL, MRPL merger will take a year, says ONGC Chairman

NEW DELHI: Hindustan Petroleum Corp. Ltd (HPCL) and Mangalore Refinery and Petrochemicals (MRPL), the two firms controlled by Oil and Natural Gas Corp., will take at least a year to merge, ONGC chairman Shashi Shanker said.

A committee comprising executives from ONGC, HPCL and MRPL is drawing up short to medium and long-term plans to leverage the synergy in the group, Shanker said. “We are discussing all points. The committee will figure out all synergy possibilities in the short to medium term. Merger is a complex exercise and will take time,” he said.

ONGC acquired HPCL for Rs 37,000 crore earlier this year, sparking speculation about plans to consolidate downstream businesses currently under different subsidiaries. MRPL operates a 15 million tonne refinery while HPCL controls 27 million tonnes of capacity. Both ONGC and MRPL operate petrochemicals facilities while HPCL too has big petrochemicals ambitions.


The recent rise in crude oil prices has pushed up domestic rates for petrol and diesel, resulting in public demands for a price reduction. The government is said to be discussing the possibility of bringing back price control and getting ONGC to partly subsidise fuel customers. ONGC hasn’t received any such directive from the government, Shanker said.