Bharat Petroleum Corporation Limited (BPCL) is set to boost its fuel retail network by nearly two-thirds, adding 14,273 pumps to strengthen its position in the thriving domestic fuel market. Currently operating 25% of the country’s petrol pumps, BPCL reported a record profit of ₹19,052 crore for the April-September period, driven by increased demand for petrol and diesel amid growing vehicle sales and economic expansion. National consumption of both fuels has seen a 6% growth in this financial year.
VRK Gupta, Director (Finance) at BPCL, stated, “We have recently issued an advertisement for 14,273 new retail outlets spread across the country for capturing more market and increasing our presence.” While the advertising signals intent, the actual expansion will depend on dealer interest and the commercial viability of the sites.
Over the past five years, India’s fuel retail network has expanded by nearly 40% to approximately 88,000 pumps, primarily led by aggressive expansion by state-run companies, as private players exercised caution. Indian Oil Corporation operates around 42% of the total pumps, with BPCL and HPCL managing a similar number, approximately 21,300 each. Notably, BPCL sells a higher volume of diesel and petrol on average compared to HPCL.
BPCL’s robust profit this year is attributed to factors such as cheaper Russian crude oil, higher refining margins, and a freeze on domestic pump prices. The company’s ability to process cost-effective crude and make strategic switches between different products has contributed to boosted refining margins. The profits have also facilitated a reduction in gross borrowings, falling by ₹5,000 crore sequentially to ₹22,500 crore.
While borrowings are expected to rise in the coming years due to significant capital expenditure plans, with ₹150,000 crore allocated for the next five years, BPCL aims to invest ₹10,000 crore this year. A significant portion of the capital expenditure will be directed towards expanding refining and petrochemicals capacity, with allocations for upstream, city gas, and marketing infrastructure.
