BPCL Confident on Refinery Expansion Plans Amid West Asia Conflict

Bharat Petroleum Corporation Ltd (BPCL) is confident that its refinery expansion plans will not be affected by the recent flare-up in West Asia. According to Vetsa Ramakrishna Gupta, Director (Finance) of BPCL, the conflict is expected to be temporary and crude prices are likely to cool off once it resolves.

The June-end quarter was a challenging period for India's oil-marketing companies as they struggled to shield retail fuel prices despite elevated crude prices. To mitigate this, BPCL diversified its crude sources by acquiring increased amounts from Russia, Angola, and Venezuela, among others.

BPCL also tapped into the spot market, where purchases surged to about 69% in the first quarter of FY27 from 44% in the comparable period last year. Gupta noted that some discounts on spot purchases were available until the end of June.

The company's LPG procurement strategy was also adjusted during this period. BPCL increased its spot purchases from the U.S., which were available without any disturbances, despite taking a longer time for voyage. However, the difference between the Saudi CP benchmark and the Mont Belvieu benchmark was not significant.