State-run oil marketing companies are under significant financial strain, with daily under-recoveries still at around Rs 750 crore despite recent fuel price increases, as mentioned by Petroleum Secretary Sujata Sharma. This situation is exacerbated by ongoing disruptions in crude oil and LNG imports due to tensions in West Asia, impacting global energy supply chains for over a month.
Sharma reassured that India currently maintains ample fuel inventories, ensuring no shortages nationwide. She emphasized that there is no dry-out scenario being reported, with the government and oil firms working closely to guarantee uninterrupted fuel supply and smooth distribution across the country.
Notably, there has been a shift in fuel demand patterns, with a growing focus on retail fuel pump sales to sustain consistent availability for consumers. While under-recoveries for state-run oil companies have decreased from nearly Rs 1,000 crore per day to about Rs 750 crore per day post the recent price adjustment, Sharma clarified that there are no plans for a bailout package for these companies at the moment.
Regarding LPG supplies, Sharma highlighted that despite global challenges, oil companies have successfully maintained stable distribution. Recent data shows that LPG cylinders were delivered promptly, with supply chains remaining operational and reliable.
The ongoing turmoil in West Asia continues to create volatility in global energy markets, intensifying pressure on India’s energy import bill and raising concerns about the financial well-being of state-run fuel retailers.
