OMCs Report Record Profits. Then Why Are Petrol Prices Rising? | IOC, BPCL, HPCL

IOC, BPCL and HPCL posted massive profit growth in Q4FY26 and for the full fiscal year - but at the same time, they say they are suffering heavy under-recovery losses due to soaring crude oil prices. So what’s the real story? In this detailed breakdown, Business Today decodes why OMCs can report record profits and still raise petrol and diesel prices. The answer lies in refining margins, inventory gains, timing mismatch in crude purchases, and the sharp spike in global oil prices after the West Asia conflict. Experts warn that while FY26 profits were driven by cheaper crude earlier in the year, FY27 could be far tougher if oil stays above $100 per barrel. Watch this explainer to understand the real economics behind India’s fuel price hikes and OMC earnings.