India's fuel consumption dropped year-on-year in August and September, hitting a two-year low in the latter month. India's Bharat Petroleum Corp (BPCL) reported a slump in second-quarter profit on Friday, weighed down by lower marketing margins.
The state-owned company's standalone net profit fell 71.8% to 23.97 billion rupees (USD 285.2 million) for the three months ended Sept. 30. Analysts had expected a profit of 35.06 billion rupees, as per data compiled by LSEG.
The country's third-largest oil refiner by capacity said the average gross refining margin for April-September fell to USD 6.12 per barrel from USD 15.42 per barrel a year earlier.
The company has decided not to raise capital through a rights issue due to improved internal generation of funds and as the ministry of petroleum and natural gas has said it will not be allocating funds for capital support to oil marketing companies.
India, the third-largest oil importer and consumer globally, usually experiences a drop in fuel demand during the four-month monsoon season starting in June. This decline is largely due to severe flooding in various regions, which hampers mobility.
Additionally, heavy rains impact agricultural demand, as farmers rely on gasoil-powered generators for irrigation.
India's fuel consumption dropped year-on-year in August and September, hitting a two-year low in the latter month.
Global crude oil prices dropped nearly 17% in the quarter ended September.
The Indian government cut the windfall tax on petroleum crude twice in July and August before scrapping it entirely on Sept. 15.
