Bharat Petroleum Corporation Limited has disclosed receiving a significant tax demand order from the Commissioner of Central Tax and Central Excise, Kochi, dated February 21, 2026. The order addresses long-pending adjudication matters spanning from September 2004 to May 2010, with substantial financial implications for the oil marketing company.

Order Details and Financial Impact

The Adjudicating Authority has confirmed a total demand of ₹1,816.65 crores against BPCL, breaking down into multiple components that reflect both the principal amount and accumulated interest over the years.

Background of the Dispute

The order addresses 19 Show Cause Notices that were pending adjudication by the central excise department, all pertaining to transaction value disputes under Central Excise law. The major portion of the confirmed demand relates to the pre-merger period of Kochi Refineries Limited from September 2004 to August 2006.

The Adjudicating Authority made several key determinations that formed the basis of the demand:

• BPCL and Kochi Refineries Limited were ruled to be related parties
• Refinery Gate Price cannot be used for excise valuation purposes
• Department's valuation under Rule 11 read with Rule 9 of Central Excise Valuation Rules, 2000 was deemed valid
• Post-merger valuation methodology was also questioned

Valuation Methodology Dispute

The core of the dispute centers around excise valuation rules and their application. For the pre-merger period, the Authority rejected the use of Refinery Gate Price, citing the related party relationship between BPCL and KRL. After the merger, while BPCL's Kochi Refinery applied Rule 7 of Central Excise Valuation Rules, 2000 using highest-quantity depot price, the department applied the highest value of the entire fortnight to all clearances under Rule 11 read with Rule 7.

Company's Response Strategy

BPCL has indicated its intention to challenge the order through the established appellate process. The company plans to analyze the order thoroughly and file an appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). This approach suggests the company believes it has grounds to contest the Authority's findings and valuation methodology.

Regulatory Compliance

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrating the company's commitment to keeping stakeholders informed about material developments that could impact its financial position.

Bharat Petroleum Corporation Limited has announced significant changes in its senior management structure, informing stock exchanges about key personnel transitions under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Executive Director Superannuation

The company reported that Shri Anilkumar P., Executive Director I/C (Biofuels), superannuated from the services of the company on January 31st, 2026. This marks the end of his tenure in the biofuels division leadership role.

New Executive Director Appointments

Effective February 1st, 2026, BPCL promoted five employees to Executive Director positions, representing one level below the Board of Directors. The appointments span across critical business units and operational divisions.

Professional Experience and Expertise

The newly appointed Executive Directors bring extensive experience across various operational segments:

Operations and Quality Control: Shri Dhanapal S has handled diverse roles in HRS, LPG operations including State Head, Territory Manager positions, and Quality Control Wing responsibilities.

Exploration and Production: Shri Manoj K brings experience from LPG Territory Management, Territory Coordination, LPG Operations, CPO (Marketing), and E&P divisions.

Consumer and Retail Operations: Shri Akash Tiwari has managed Aviation, Retail, served as CEO at BSSPL on deputation, and handled I&C, Lubes, and Consumer Retailing segments.

Industrial and Commercial Segments: Shri Manoj Menon has experience across Retail operations, LPG Territory Management, LPG Sales, and Industrial & Commercial divisions.

Gas Business Unit: Shri Rouf Mohd Khan has worked across E&P, Retail, and Gas BU operations, bringing comprehensive understanding of the gas value chain.

Additional Senior Appointments

The management restructuring also includes appointments in specialized roles and subsidiary operations:

These appointments reflect BPCL's strategic focus on strengthening leadership across its core business segments including refining, marketing, exploration, and retail operations. The diverse educational backgrounds and operational experience of the new Executive Directors position the company to enhance its operational efficiency across multiple business verticals.