Vijay C Roy
Today News Online Service
Chandigarh, June 2
Despite low fuel consumption in the fiscal ended March 31, the net profit of three public sector oil companies zoomed past Rs 50,000 crore.
According to data, the country’s fuel demand contracted by 9.1% in 2020-21 amid the lockdowns imposed to combat the spread of Covid. As per data compiled by the Oil Ministry’s Petroleum Planning and Analysis Cell, India consumed 19.46 crore tonne of petroleum products in 2020-21 as compared to 21.41 crore tonne in the previous year.
The demand contraction was led by diesel — the most-consumed fuel in the country. It fell by 12% to 7.27 crore tonne while petrol demand plummeted by 6.7% to 2.80 crore tonne. Also, jet fuel consumption fell 53.6% to 37 lakh tonne. LPG was the only retail fuel that posted growth, with consumption rising by 4.7% to 2.75 crore tonne from 2.63 crore tonne in 2019-20.
Fuel demand shrinks 9.1%
- The country’s fuel demand contracted by 9.1% in FY21 amid lockdowns and restrictions imposed to combat the spread of Covid
- As per data, India consumed 19.46 crore tonne of petroleum products in FY21 as compared to 21.41 crore tonne in FY20
Huge contraction in fuel demand notwithstanding, the three state-owned oil companies posted a record profit. Indian Oil reported a record annual profit of Rs 21,836 crore in FY21 as compared to Rs 1,313 crore in FY20. The company attributed the rise in profit to inventory gains, which came from fluctuations in global oil prices and rising sales of high-margin petrochemical products.
Similarly, Bharat Petroleum reported a record standalone net profit of Rs 19,041.67 crore in FY21 due to higher refining margin, resulting from inventory gains accruing from rebounding oil prices. In FY20, its net profit was Rs 2,683.19 crore.
Hindustan Petroleum posted a net profit of Rs 10,664 crore in FY21 as compared to Rs 2,637 crore in FY20.