Government-owned oil marketing companies like Indian Oil, Hindustan Petroleum, and Bharat Petroleum are facing daily losses of approximately Rs 600 crore, even after recent petrol and diesel price increases. This marks the fourth price hike in the last 10 days, with petrol rising by Rs 2.61 per liter and diesel by Rs 2.71 per liter.
According to Sujata Sharma, a Joint Secretary in the Ministry of Petroleum, the global price surge for petrol and diesel stands at 22% and 27%, respectively. However, in India, the increase is significantly lower at 7.7% for petrol and 8.6% for diesel. Despite government efforts such as reducing excise duty by Rs 10 per liter, the oil companies are still incurring losses.
Even with the recent fuel price hikes, oil marketing companies are grappling with high under-recoveries due to mounting losses in domestic LPG sales and soaring crude prices. The average cost of imported oil surged to $107.84 in May, a substantial rise from $69.01 in February before the conflict began.
Retail petrol and diesel prices in India have remained stable since early April 2022, impacting the profit margins of public sector oil firms. Ensuring the availability of crude that aligns with their refineries’ technical and commercial requirements remains a key focus for the government and the oil companies.
