Recent Fuel Price Hike Reduced OMCs' Daily Losses on Retail Sales by ₹250 Cr: Official
The hike reduced combined losses by Rs 250 crore a day, but public sector retailers still face under-recoveries and no bailout package is planned.
- On Friday, India's oil marketing companies—Indian Oil, Bharat Petroleum, and Hindustan Petroleum—hiked petrol and diesel prices by Rs 3 per litre, reducing their combined daily losses to Rs 750 crore.
- Global crude oil prices surged over 50% due to the West Asia war, prompting the government to allow this price adjustment to contain incremental balance sheet stress rather than restore marketing margins.
- Petroleum Ministry Joint Secretary Sujata Sharma confirmed the reduction on Monday, noting that the hike offers operational breathing room, bringing residual under-recoveries down to Rs 10 and Rs 13 per litre.
- Although the price hike provides relief, Sharma stated that no bailout package is currently under consideration, as the government continues to manage supply and prevent artificial scarcity through surprise inspections.
- Analysts warn that fuel price increases could add about 15-25 basis points to headline inflation, while petrol consumption rose about 6.36% and LPG demand declined 16.2% in April.
14 Articles
14 Articles
Recent fuel price hike reduced OMCs' daily losses on retail sales by ₹250 cr: official
State oil firms have trimmed their combined daily losses to ₹750 crore from ₹1,000 crore after a ₹3-per-litre fuel price hike from Friday, but remain significantly under-recovered.
Indian OMCs Narrow Losses Amid West Asia Crisis
Indian public sector Oil Marketing Companies (OMCs) have reduced their daily losses from Rs 1000 crores to Rs 750 crores amid West Asia tensions. Prices for petrol, diesel, and Compressed Natural Gas have increased, with refineries operational and no disruptions reported in fuel supply.
After Fuel Price Hike, Oil Companies' Daily Loss Now Rs 750 Crore
"Currently, the daily loss incurred by state-run oil companies stands at approximately Rs 750 crore. This figure includes the import costs for petrol, diesel, and LPG," Sujata Sharma, Joint Secretary at the Ministry of Petroleum, said today.
Petrol, diesel price hike cuts OMCs’ daily losses by a fourth, current loss pegged at Rs 750 crore a day
The OMCs hiked petrol and diesel prices by Rs 3 per litre on Friday, the first increase in over four years, as they continue to grapple with financial strain amid the West Asia crisis.
Coverage Details
Bias Distribution
- 45% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
