Rs 30,000 cr loss a month: Oil companies bleed as fuel prices on hold amid global energy spike
GST
Dated:- 8-5-2026
PTI
New Delhi, May 8 (PTI) About Rs 700-1,000 crore loss per day. Rs 30,000 crore every month. India's state oil companies are quietly absorbing a massive financial hit to keep petrol, diesel and LPG prices unchanged even as global energy markets face a turmoil that is bigger than all previous crises combined.<\/p>\n
While countries from Japan to United Kingdom have raised petrol and diesel prices by up to 30 per cent since the start of the West Asia conflict, fuel prices in India continue at two-year-old levels.<\/p>\n
The war disrupted India's import of 40 per cent of crude oil (raw material for making petrol and diesel), 90 per cent cooking gas LPG and 65 per cent natural gas (used to generate electricity, make fertilizer, turned into CNG and piped to household kitchens for cooking), but state-owned oil companies have maintained uninterrupted fuel supplies with n<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n d USD 70 per barrel two months ago, are now at USD 120, she said. “It has been government's endeavour to keep prices stable so far and that there is no price increase for consumers,” she said. “This has hit finances of OMCs… monthly under-recoveries are of the order of Rs 30,000 crore.” \t She, however, refused to say if retail petrol and diesel prices will continue to hold.<\/p>\n “As I said, the endeavour so far has been to see that there is no price increase,” she said.<\/p>\n The three oil marketing companies (OMCs) have worked overtime to keep the supply lines running even when demand spiked due to panic buying.<\/p>\n The government intervention included excise duty reductions and absorption of part of the fuel cost burden. The special additional excise duty on petrol was cut to Rs 3 per litre from Rs 13, while excise duty on diesel was reduced to zero from Rs 10 per litre.<\/p>\n The under-recoveries would have swelled to nearly Rs 62,500 crore had the government not cut excise duty on pet<\/p>\n = = = = = = = =<\/p>\n
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