State-run Hindustan Petroleum Corporation said its cumulative under-recovery on petrol, diesel and liquefied petroleum gas in the April-June quarter of FY27 stood at about ₹26,000 crore. The figure points to significant pressure on the company’s fuel business at the start of the financial year.
According to the company, the strain was driven by rising crude oil prices. The conflict in West Asia also added to the pressure by increasing volatility in global energy markets and pushing up input costs.
The update highlights the challenge for oil marketing companies when international crude prices move higher and squeeze returns on major retail fuels. Petrol, diesel and LPG remain critical products for both transport and household consumption, making pricing pressure especially important for a large state-run player like HPCL.
HPCL’s disclosure underlines how quickly geopolitical tensions can affect India’s downstream fuel sector. When crude prices climb sharply, the gap between costs and realizations can widen, weighing on company finances and margins during the quarter.
