India’s state-run oil marketing companies (OMCs) reported significant under-recoveries on the retail sale of petrol and diesel during the first quarter of the financial year, with estimated losses of ₹18.9 per litre on diesel and around ₹6 per litre on petrol. The losses were driven by a sharp rise in global crude oil prices and increased international fuel costs, while domestic retail fuel prices remained largely unchanged. The gap between the higher import cost of crude and the fixed retail selling price put pressure on the earnings of public sector fuel retailers, forcing them to absorb a substantial portion of the increased costs. Industry analysts said diesel witnessed steeper losses due to stronger international demand and wider pricing differentials in global markets. Despite the financial strain, OMCs continued to maintain uninterrupted fuel supplies across the country, reflecting the government’s focus on ensuring price stability for consumers. The losses are expected to weigh on the companies’ quarterly financial performance unless international crude prices soften or domestic fuel prices are revised. Market observers believe the situation will remain closely linked to geopolitical developments, global oil supply dynamics, and currency movements, all of which influence India’s fuel import bill. Going forward, the financial health of oil marketing companies will depend on crude price trends, refining margins, and any policy measures aimed at balancing consumer interests with the sustainability of fuel retailers’ operations.
OMCs Incur Heavy Losses on Petrol and Diesel Sales in Q1
