Bharat Petroleum Corporation Ltd. (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) are two of the greatest players in state run oil refining industry. Both the organizations are working under a situation where the Government arrangements (managed petroleum item costs and adhoc endowment distribution) supersede the essentials.

Every one of us realize that because of a controlled petroleum item value environment and high expenses of unrefined, these organizations cause income misfortunes on the offers of directed petroleum items. Be that as it may, the Government toward the end of year repays these organizations in order to keep their bottomline in dark. There are no settled criteria, timing or equation for such remuneration, making it troublesome for anybody to assess budgetary execution of these organizations.

However, in the event that one investigates at the present business sector valuations and stock value drift, the stock cost of BPCL is exchanging at a premium to HPCL



Both the organizations are essentially in the matter of refining unrefined, generation and advertising of resultant petroleum items. The accompanying table highlights how organizations passage on the key operational parameters.

Operational Parameters BPCL HPCL
Refining Capacities (MMT) 21.50 14.80
Crude thruputs (MMT) 24.03 14.75
Market Sales including exports(MMT) 32.19 27.03
Domestic market sales (MMT) 29.58 25.50
Gross refining margins (US$ per barrel) 4.47 5.30
Retail outlets 9,290 10,212
Market Share in Refining capacity (incl private players) 13% 8%
Domestic Sales of Petroleum Products market share (%) 24% 22%
Exploration and Production blocks 27 25