CAG Criticizes BPCL for ₹470.56 Crore Waste on Idle Chartered Vessels from FY20 to FY23

The Comptroller and Auditor General of India (CAG) has criticized Bharat Petroleum Corporation Limited (BPCL) for inadequate planning related to storage and logistics, leading to an unnecessary expenditure of ₹470.56 crore from FY20 to FY23. BPCL hired more time chartered vessels than needed for LPG and petroleum movement without proper assessment of storage facilities.

The CAG noted that 85% of the idle cost for these vessels was attributed to LPG vessels, with utilization rates ranging from 47% to 75%. Overall, BPCL incurred an idle cost of ₹1,092.26 crore due to underutilization of chartered vessels, of which ₹470.56 crore was due to controllable factors. The Ministry of Petroleum & Natural Gas stated that infrastructure enhancements are underway and expected to be completed in FY24, though it acknowledged that idling may still occur due to various logistical challenges.