BPCL to Invest ₹2,500 Crore in Expanding City Gas Distribution Networks in FY25

Bharat Petroleum Corporation Limited (BPCL) has announced a substantial investment of ₹2,500 crore for the current fiscal year, aimed at expanding its City Gas Distribution (CGD) networks across India. This investment marks a significant step in BPCL's efforts to support the country's vision of becoming a gas-based economy. BPCL, the second-largest state-controlled oil marketing company in India, currently holds authorization for CGD networks in 26 geographical areas (GAs), with 25 already operational.

During the company's annual general meeting, BPCL Chairman and Managing Director G Krishnakumar highlighted that this investment follows a ₹1,920 crore expenditure in the previous fiscal year, emphasizing the company's commitment to broadening its gas distribution network. BPCL, along with its joint ventures, now has authorization for 52 GAs covering 154 districts, further solidifying its presence in the CGD sector. The company's gas business reported a supply of 1,857 thousand tonnes (TT) of gas in FY24, with significant growth in the CGD network, where sales doubled to 83,000 tonnes.

BPCL is also focusing on developing a comprehensive gas ecosystem across its value chain. This involves strategic sourcing, partnerships, and collaboration on import terminals, regasification facilities, and gas transport agreements in major pipelines. The expansion of the CGD networks aims to meet the growing demand for gas from domestic, retail, commercial, and industrial customers, driven by factors such as urbanization, infrastructure development, and rising automobile sales.

In addition to its CGD expansion, BPCL has also seen growth in its retail business. Despite an overall decline in diesel sales across the industry, BPCL managed to limit its decline to just 1.6%, compared to the industry's 5.5% drop. The company achieved a 1.1% year-on-year growth in its retail volume, reaching 32.69 million tonnes (MT) in FY24. BPCL also expanded its retail network significantly, adding approximately 800 new outlets, bringing the total number of outlets to over 22,000.

Looking ahead, BPCL plans to continue its expansion strategy by adding 4,000 new retail outlets over the next five years, targeting emerging markets and new expressways. This move underscores BPCL's commitment to enhancing its market presence and meeting the increasing demand for energy in India.

News by Rahul Yelligetti