Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL), and GAIL have shown remarkable increases in their capital expenditures, surpassing their annual targets within just ten months. According to ministry of petroleum and natural gas data, the three oil companies collectively spent ₹51,000 crore from April 2023 to January 2024.
In total, the oil companies expended ₹1,03,000 crore during this period, slightly below the targeted ₹1,06,000 crore for the financial year. IOCL, a refiner and fossil fuel retailer, emerged as the largest spender among the major oil companies for the fiscal year. Its expenditure reached ₹32,300 crore from April to January, surpassing the full-year target of ₹30,400 crore. The company’s investment focuses on expanding refining capacity, establishing petrochemical facilities, enhancing fuel stations, developing natural gas supply infrastructure, and setting up biofuel production units.
HPCL, currently constructing a greenfield refinery in Barmer, Rajasthan, exceeded its capex target of ₹10,200 crore for 2023-24, with an expenditure of ₹10,500 crore during the April-January period. Meanwhile, GAIL, transporter and marketer of natural gas, allocated ₹8,400 crore until January, surpassing its full-year target of ₹7,750 crore.
As reported by The Economic Times, Oil and Natural Gas Corporation (ONGC), the primary domestic producer of oil and gas, spent ₹27,000 crore until January for the fiscal year against the planned expenditure of ₹30,000 crore. Similarly, Bharat Petroleum Corporation Limited (BPCL) utilized ₹8,500 crore against the annual allocation of ₹10,000 crore.
