New Delhi, May 19: State-run oil marketing companies (OMCs) continue to face significant financial stress, with daily under-recoveries remaining near Rs 750 crore despite recent fuel price hikes, a senior Petroleum Ministry official said on Monday.
Joint Secretary in the Ministry of Petroleum and Natural Gas, Sujata Sharma, said the financial pressure persists amid prolonged disruptions in crude oil and LNG imports caused by tensions in West Asia, which have unsettled global energy supply chains for nearly six weeks.
Addressing concerns over fuel availability, Sharma said India has adequate petroleum inventories and that no supply shortages or dry-out situations have been reported across the country.
She said the government and oil companies are closely monitoring developments to ensure uninterrupted fuel supply and smooth nationwide distribution.
According to Sharma, recent fuel price revisions have helped lower under-recoveries for public sector fuel retailers from nearly Rs 1,000 crore per day to around Rs 750 crore per day.
However, she clarified that the Centre is currently not considering any bailout package for state-run oil marketing companies.
Sharma also noted changing consumption patterns, with bulk fuel demand increasingly shifting toward retail fuel outlets to maintain uninterrupted consumer access.
On LPG distribution, she said supply chains remain stable despite global disruptions. Over the past four days, oil companies delivered around 1.72 lakh LPG cylinders against nearly 1.69 lakh booking requests, indicating adequate operational capacity.
The ongoing geopolitical crisis in West Asia continues to keep global energy markets volatile, increasing pressure on India’s import bill and weighing on the financial position of public sector fuel retailers.
