The government said oil companies are losing around ₹30,000 crore monthly on petrol, diesel and LPG sales as global energy prices remain elevated.1 Min Read
State-run oil marketing companies (OMCs) are incurring losses of nearly ₹30,000 crore every month on the sale of petrol, diesel and LPG as retail fuel prices remain unchanged despite rising global energy costs, the government has said.The losses are largely being driven by elevated crude oil and fuel prices amid ongoing geopolitical tensions and supply disruptions in West Asia, according to details shared by the government.Despite the sharp increase in international energy prices, public sector fuel retailers have not fully passed on the higher costs to consumers, resulting in mounting financial pressure on oil companies.The losses are understood to include under-recoveries on domestic LPG sales and marketing losses on auto fuels such as petrol and diesel.India’s major state-run fuel retailers include Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited.The development comes at a time when global crude prices and freight costs have remained volatile due to the continuing conflict in West Asia, raising concerns over inflation, fiscal pressures and the financial health of oil marketing companies.Fuel prices in India have largely remained steady in recent months despite fluctuations in global oil markets.
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