Indian state-controlled refiner Hindustan Petroleum (HPCL) increased domestic sales of LPG and oil products to 10.26mn t during January-March, up by 4pc from a year earlier.
HPCL's crude throughput also increased with the revamp of its Mumbai refinery, which is currently operating at an increased capacity of 190,000 b/d from 150,000 b/d previously. The refinery registered its highest quarterly crude throughput during January-March, the final quarter of the 2021-22 fiscal year, according to the refiner.
HPCL's refineries processed a total of 380,000 b/d of crude over January-March, up by 6pc on the year. Its gross refinery margin was $12.44/bl for January-March, up by 53pc from the same period a year earlier.
HPCL's Visakhapatnam (Vizag) refinery modernisation project is progressing well, and the mechanical completion of units there have commenced in phases. The refiner expects the 166,000 b/d refinery to start operating at an enhanced capacity of 300,000 b/d during the first half of the April 2022-March 2023 fiscal year.
HPCL operates around 580,000 b/d of refining capacity, including its 226,000 b/d Bathinda refinery, a joint venture with private-sector Mittal Energy.
The refiner is also building a second-generation ethanol biorefinery in Bathinda with a capacity of 100 kilolitres/d of ethanol, produced from biomass. The project is expected to be completed this fiscal year. Finance minister Nirmala Sitharaman had announced in February that an additional tax of 2 rupees/l ($0.03) will be levied on unblended gasoline from 1 October.
HPCL, state-owned refiners IOC and Bharat Petroleum account for 90pc of India's fuel sales.
HPCL's overall domestic sales rose to 37.45mn t in the 2021-22 fiscal year, up by more than 6pc on the year. Its gross refinery margin was up by 86pc on the year to $7.19/bl for 2021-22.
Higher domestic sales and margins helped to lift HPCL's profit to Rs72.94bn ($0.94bn) for 2021-22.
The 2021-22 fiscal year has seen world economies recovering strongly and consumption gradually moving back towards pre-pandemic levels, the refiner said.
