OMCs still losing nearly Rs 750 crore daily despite fuel price hike: Petroleum Ministry official
New Delhi, May 18
State-run oil marketing companies continue to face severe financial pressure, with daily under-recoveries remaining close to Rs 750 crore despite the recent increase in fuel prices, Joint Secretary in the Ministry of Petroleum and Natural Gas, Sujata Sharma said on Monday.
Her remarks come amid continuing disruptions in crude oil and LNG imports due to the ongoing tensions in West Asia, which have impacted global energy supply chains for nearly one-and-a-half months.
Speaking on the current fuel supply situation, Sharma assured that India continues to have adequate fuel inventories and no shortages have been reported anywhere in the country.
"We have sufficient inventory and no dry-out situation is being reported," she said.
"The government and oil companies are closely monitoring the situation to ensure uninterrupted supply and smooth distribution of petroleum products across the country," Sharma added.
According to Sharma, fuel demand patterns are also witnessing a shift, with bulk fuel sales increasingly moving towards retail fuel pump sales to maintain uninterrupted availability for consumers.
She said under-recoveries faced by state-run oil marketing companies have reduced from nearly Rs 1,000 crore per day earlier to around Rs 750 crore per day after the recent fuel price hike.
However, she clarified that the Centre is not considering any bailout package for public sector fuel retailers at present.
On LPG supplies, Sharma said oil companies have managed to maintain stable distribution despite global challenges.
"Over the last four days, around 1.72 lakh LPG cylinders were delivered against nearly 1.69 lakh booking requests, indicating that supply chains remain operational and stable," Sharma explained.
The ongoing crisis in West Asia has kept global energy markets volatile, increasing pressure on India's energy import bill and raising concerns over the financial health of state-run fuel retailers.
— IANS
Reader Comments
At least they are transparent about the losses. Rs 750 crore daily is huge — but glad to hear our fuel supply is stable. LPG delivery numbers are reassuring. Need more renewables though, sirjee!
Interesting perspective from India. In the US, we face similar volatility but with different market mechanisms. The under-recovery concept is uniquely Indian — shows how much the government subsidizes fuel. Hope the conflict in West Asia resolves soon.
Why no bailout for OMCs but common man pays more? Bhai, first they say 'no shortage' then they say 'we are losing money' — something doesn't add up. I hope our ministers are not cooking numbers like chai! ☕
Respectful criticism: The government should focus on long-term solutions — more strategic reserves, renewable push. This West Asia tension has been going on for months, why are we still so dependent? India needs Atmanirbhar energy, not just slogans!
Good to hear India has adequate inventories and stable LPG supply. But 750 crore daily loss is staggering — that's about $90 million. No bailout makes sense for fiscal discipline, but OMCs might need structural reforms. Interesting times.
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