Bharat Petroleum Corporation Limited has published newspaper advertisements regarding its postal ballot seeking shareholder approval for material related party transactions worth up to ₹8,438.61 crore with Petronet LNG Limited for Financial Year 2026-27. The company submitted notification to stock exchanges on March 28, 2026, confirming publication of advertisements in Economic Times (English) and Maharashtra Times (Marathi) newspapers.

Transaction Details and Breakdown

The proposed transactions with Petronet LNG Limited encompass multiple business activities centered around natural gas operations. The company seeks approval for purchasing Regasified Liquified Natural Gas (RLNG) and availing various services including regasification and lorry loading at Kochi and Dahej terminals.

The transactions are classified as material related party transactions as they exceed the threshold limit of ₹5,000 crore prescribed under SEBI regulations. Petronet LNG Limited qualifies as a related party, with BPCL holding a 12.50% shareholding in the company.

Historical Transaction Pattern

BPCL has maintained consistent business relationships with Petronet LNG Limited over recent years. The company provided historical transaction values demonstrating the ongoing nature of these business arrangements.

For Financial Year 2024-25, the total transactions included purchase of goods worth ₹7,462.20 crore, receiving services valued at ₹279.16 crore, dividend income of ₹187.50 crore, and sales of goods amounting to ₹0.21 crore.

Voting Process and Timeline

The company has established a comprehensive e-voting framework for shareholder participation. Remote e-voting commenced at 9.00 a.m. on Monday, 30th March 2026 and will conclude at 5.00 p.m. on Tuesday, 28th April 2026. The cut-off date for determining eligible shareholders is Monday, 23rd March 2026.

Regulatory Compliance and Governance

The postal ballot process adheres to multiple regulatory frameworks including Section 108 and Section 110 of the Companies Act, 2013, Companies (Management and Administration) Rules, 2014, and SEBI Listing Regulations. The company emphasized that all transactions are conducted in the ordinary course of business on arm's length basis, reviewed and recommended by the Audit Committee and Board.

Shri Sanjay Khanna, Chairman & Managing Director of BPCL, serves as a Nominee Director on Petronet LNG Limited's Board. His interest extends to directorship and shareholding in Petronet LNG Limited, while other directors' interests are limited to their shareholding, if any, in the related party.

Financial Context and Rationale

The proposed transaction value represents 1.68% of BPCL's annual consolidated turnover of ₹5,00,517.48 crore for the immediately preceding financial year. For Petronet LNG Limited, the transaction constitutes 16.55% of their consolidated turnover of ₹50,982.03 crore. The arrangement is deemed commercially beneficial, with BPCL highlighting that major purchases of RLNG and regasification services through Petronet LNG Limited provide operational advantages. The pricing determination considers crude oil prices of USD 65.43 per barrel based on historical trends and an exchange rate assumption of INR 90 per USD.

Bharat Petroleum Corporation Limited has officially dismissed rumors circulating about potential shortages of petrol and diesel, stating that such claims are completely false. The company has assured stakeholders and consumers that fuel supply operations continue to function normally across its distribution network.

Company's Official Position

The oil marketing company has taken a clear stance against the misinformation, emphasizing that there are no disruptions in fuel availability. BPCL's statement aims to address any concerns that may have arisen among consumers and business partners due to these unfounded rumors.

Supply Operations Status

The company's clarification serves to maintain market confidence and ensure that consumers are aware of the actual supply situation. BPCL's proactive communication demonstrates its commitment to transparency and addressing market concerns promptly.

Market Impact

By addressing these rumors directly, Bharat Petroleum aims to prevent any unnecessary panic or speculation in the fuel market. The company's statement reinforces the stability of fuel supply chains and distribution operations under its network.