OMCs still losing nearly Rs 750 crore daily despite fuel price hike: Petroleum Secretary
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, Petroleum Secretary 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
Interesting how bulk sales are shifting to retail. This suggests industries are hoarding fuel at pumps? Or is it just ensuring availability for common people? Need more clarity from the Petroleum Secretary.
Finally someone acknowledging reality! For months we were told prices were stable but OMCs were secretly drowning. At least they're transparent now about the ₹750 crore daily hole. But why should we citizens bear the burden via price hikes? 🤔
Good to hear LPG supply is stable, especially with cylinders being delivered faster than bookings. That's efficient management in a crisis. But I'm worried about the long-term trend if West Asia tensions continue. We need to accelerate renewable energy investments! 🌞
The Petroleum Secretary says no dry-out situation but I've seen long queues at my local petrol pump in Bengaluru. Either supply chain is patchy or demand has suddenly spiked. Something doesn't add up. 😕
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