BPCL Plans Two-third Increase In Retail Fuel Presence
Bharat Petroleum Corporation Limited (BPCL) is set to significantly expand its fuel retail network by adding 14,273 pumps, representing almost two-thirds growth.
The action is intended to improve BPCL's standing in the quickly growing domestic gasoline industry. With a half-yearly record profit of 19,052 crore recorded for the April–September period, the company is proceeding with its growth plans in order to fulfil the increasing demand for petrol and diesel.
The company's aim is shown by its recent advertisement for additional retail locations; however, the actual implementation is subject to dealers' interest and the sites' commercial viability.
In the previous five years, India's fuel retail network has expanded by almost 40 per cent to reach about 88,000 pumps, despite a cautious approach by private operators.
A freeze on local pump prices, improved refining margins, and inexpensive Russian crude oil are some of the reasons behind BPCL's remarkable profit this year. Refining profits have grown as a result of the company's enhanced ability to process more affordable crude and its flexibility in switching products; in the second quarter, 30–40 per cent of the company's processed oil came from Russia.
Because of the company's strong profitability, gross borrowings have dropped, going from Rs 5,000 crore to Rs 22,500 crore over time. In spite of this, borrowing is anticipated to increase in the upcoming years, especially as BPCL intends to invest Rs 150,000 crore over five years, of which Rs 10,000 crore is allocated for this year alone.
A substantial portion of the capital expenditure will be allocated to expanding refining and petrochemical capacity, with additional investments in upstream activities, city gas projects, and marketing infrastructure.
