Crude’s 51.5% 20-day surge renews margin pressure on HPCL and BPCL
India’s crude basket rose from $68.21 a barrel on July 3 to $103.33 on July 23, intensifying pressure on state-run fuel retailers. HPCL and BPCL had already posted combined June-quarter losses above ₹14,000 crore, while LPG under-recoveries exceeded ₹7,000 crore.
A 51.5% jump in India’s crude basket is renewing margin pressure on fuel retailers HPCL and BPCL, which already reported over ₹14,000 crore in combined June-quarter losses. Prolonged Red Sea disruptions could raise freight costs, under-recoveries and Q2-Q3 financial strain.
Why this matters
The surge follows HPCL’s ₹12,265 crore Q1 FY27 loss amid ₹26,000 crore in fuel under-recoveries and HPCL-BPCL’s swing to Q1 losses as LPG under-recoveries rose.
The retail-company theme is accelerating, up 1,094,900% QoQ.