New Delhi, May 26: Government-owned oil marketing companies (OMCs) continue to incur losses of nearly Rs 600 crore per day despite recent increases in petrol and diesel prices, a senior government official said on Monday.
The latest fuel price revision on May 25 marked the fourth increase in the past 10 days, with petrol prices raised by Rs 2.61 per litre and diesel by Rs 2.71 per litre. With this revision, cumulative hikes in both fuels have reached nearly Rs 7.50 per litre following the resumption of daily price revisions after a prolonged freeze.
Joint Secretary in the Ministry of Petroleum, Sujata Sharma, said global fuel prices have risen sharply, with petrol prices increasing around 22 per cent and diesel about 27 per cent internationally.
However, domestic price increases have remained comparatively moderate, with petrol rising 7.7 per cent and diesel 8.6 per cent, she said.
Sharma noted that the government had already reduced excise duty on petrol and diesel by Rs 10 per litre, resulting in an estimated revenue impact of Rs 14,000 crore, before allowing retail price increases.
Despite these measures, OMCs were incurring losses of nearly Rs 1,000 crore per day earlier. Following the recent hikes, daily losses have eased but remain close to Rs 600 crore.
According to ICRA Senior Vice President and Co-Group Head, Corporate Ratings, Prashant Vasisht, under-recoveries remain elevated due to continued losses on domestic LPG sales and persistently high crude oil prices.
Official data showed the average crude import price rose to $107.84 per barrel in May, compared with $69.01 per barrel in February before geopolitical tensions escalated.
Brent crude remained volatile through April, falling briefly after ceasefire hopes but surging again amid concerns over renewed conflict, with the monthly average hovering around $117 per barrel.
The government said ensuring domestic fuel availability remains a priority and oil companies will continue sourcing crude that is technically and commercially suitable for refinery operations.
