New Delhi: State-run oil marketing companies are incurring losses by selling petrol and diesel without raising retail prices, according to a research note.
Indian Oil, Bharat Petroleum and Hindustan Petroleum have kept pump prices unchanged since April 2022. During this period, global crude prices have seen sharp swings driven by conflicts such as the Russia–Ukraine war and the US–Israel war.
A report by international financial services firm Macquarie said the revenue outlook for fuel retailers remains uncertain as India’s oil market is highly exposed to global crude price increases. It noted that crude had at one point climbed to around $120 a barrel, with the impact still lingering.
As a result, the report estimated losses of about Rs 18 per litre on petrol and up to Rs 35 per litre on diesel. When crude crossed $100 a barrel last month, oil companies faced losses of up to Rs 2,400 crore per day.
The note added that the central government’s excise duty cut of Rs 10 per litre has partly offset the hit. Profits earned in January and February were used to cover March losses, and the companies are expected to post a loss for the January–March quarter.
