BUSINESS
Will LPG cylinder prices rise again? Companies are losing ₹245 per cylinder; will consumers also be affected?
There's currently a tense atmosphere globally. This has led to a significant increase in crude oil prices. Oil refining companies are currently suffering significant losses. HPCL is losing ₹245 per cylinder. Therefore, it's expected that this could impact the common man as well. What is the actual situation?
HPCL's Managing Director clarified that this loss could reach ₹327 in November. The companies are suffering these losses due to the ongoing conflict in West Asia. Crude oil prices are skyrocketing due to the ongoing war on multiple fronts around the world. This is causing significant losses for oil marketing companies.
HPCL's Managing Director clarified that it suffered a loss of ₹500 crore on LPG cylinder sales in the second quarter.
Currently, Indian Oil, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation are selling domestic cylinders at prices below market prices, resulting in significant losses for these companies.
Companies are facing a lot
right now. Rising crude oil prices aren't the only problem. Rising freight costs are also impacting their balance sheets. According to the company, the freight rate for Suezmax tankers is now $9 per barrel, compared to $4 per barrel in the first quarter. Furthermore, given the current situation, HPCL is considering emergency purchases. This is further increasing its burden.
What was the net profit in the second quarter?
HPCL announced its quarterly results last week. The company reported a net profit of ₹3,625.22 crore in the second quarter. In the first quarter, the company had a net loss of ₹12,264.67 crore. It is worth noting that the company's profit has declined by 6.1 percent year-on-year. In the same quarter last year, the company's profit was ₹3,859 crore. The company's operating income has increased by 26.1 percent year-on-year to ₹1,39,140 crore. Last year, the company had earned ₹1,10,323 crore. But considering the current situation, the question arises whether there is a possibility of increasing LPG prices to compensate for this loss.
