Oil companies losing 550 cr daily even after increasing prices 4 times

State-owned oil marketing companies (OMCs) are continuing to incur losses of around ₹550 crore per day despite increasing petrol and diesel prices by ₹7.50 per litre over the past two weeks, according to the Ministry of Petroleum and Natural Gas. The ministry stated that before the recent price revisions, the companies were absorbing losses exceeding ₹1,000 crore daily. It added that public sector OMCs are currently bearing losses on the sale of petrol, diesel, and domestic LPG while partially shielding retail consumers from the impact of rising international crude oil prices amid the ongoing West Asia crisis.

The ministry said the government has directed oil marketing companies not to pass on the full increase in global fuel costs to domestic consumers. According to the ministry, the decision has been taken as a consumer protection measure aimed at reducing the burden on households, two-wheeler users, and farmers. It clarified that this protection is limited to retail consumers and does not apply to industrial procurement, where fuel pricing continues to follow international market trends in accordance with existing policy.

The ministry also stated that there is no shortage of fuel anywhere in the country. India currently has an installed refining capacity of 258.1 million tonnes per annum across 22 operational refineries. During the previous financial year, domestic petroleum consumption stood at 243.2 million tonnes, while exports of petroleum products reached 61.5 million tonnes. The ministry said the country remains one of the world's largest exporters of refined petroleum products and maintained that any perception of scarcity is not linked to supply constraints.