Bharat Petroleum Corporation Limited (BPCL) is currently navigating a significant regulatory challenge following a massive excise duty demand. The Commissioner of Central Tax and Central Excise, Kochi, has issued an order seeking a total of **Rs 1,816.65 crore**. This financial demand is broken down into a primary excise duty of **Rs 476.94 crore**, a substantial interest component of **Rs 1,339.70 crore**, and a penalty of **Rs 95,000**. The dispute centers on historical valuation issues related to the Kochi Refinery, primarily covering the period between September 2004 and May 2010. BPCL has officially stated that it is reviewing the order and intends to challenge the decision by filing an appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). The company maintains that the demand arises from a disagreement over "related person" transactions and pricing methodologies used during that period. In the equity markets, BPCL shares have shown resilience despite the news. As of February 24, 2026, the stock is trading near **Rs 372.10**, reflecting a daily gain of approximately **1.58%**. The company’s market capitalization remains robust at approximately **Rs 1.62 lakh crore**. Technically, the stock has delivered a strong one-year return of over **45%**, significantly outperforming broader indices. Current market sentiment remains largely positive, with nearly **71%** of analysts maintaining a "Buy" rating. Investors are closely watching the company’s gross refining margins (GRM), which recently stood at a healthy **$10.78 per barrel** in the latest quarterly reports. The broader energy sector is currently influenced by fluctuating global crude prices. Brent crude is hovering around **$67–$71 per barrel**. While rising oil prices typically pressure the margins of oil marketing companies, BPCL’s efficient treasury management and lower debt levels—down to **Rs 12,262 crore**—provide a solid buffer against market volatility. India’s refining landscape continues to expand, with national capacity reaching **258.1 MMTPA** for the current fiscal year. As the world’s fastest-growing oil consumer, India's demand for petroleum products is projected to reach **5.99 million barrels per day** by 2026. Stakeholders are advised to monitor the upcoming CESTAT proceedings, as the outcome of the Rs 1,816 crore appeal could impact the company’s future dividend distributions and liquidity. For now, the operational strength of BPCL’s Mumbai, Kochi, and Bina refineries continues to support its leadership position in the energy market.