India Faces Fuel Losses Amid Surging Crude Prices

India's oil marketing companies are experiencing substantial financial strain as global crude oil prices escalate amid the ongoing conflict in West Asia. Despite the surge in prices, retail fuel costs remain stable, leading to significant losses for the sector, according to the Ministry of Petroleum and Natural Gas.

At a recent inter-ministerial briefing, Sujata Sharma, Joint Secretary in the Ministry, revealed that these companies face under-recoveries of approximately Rs 24 per litre on petrol and Rs 104 per litre on diesel. The rise in Brent crude prices from around USD 65 to over USD 100 per barrel has played a major role in these challenges.

The Indian government has reduced excise duty to maintain price stability, with oil marketing firms shouldering part of the fiscal burden. Despite these struggles, the government assures that fuel distribution remains unaffected across the nation, aided by secured crude supplies and fully operational refineries. In addition, the government supports expanding Piped Natural Gas (PNG) networks to alleviate reliance on LPG.