OMCs Hit By Rs 30,000 Crore Monthly Losses As Govt Shields Consumers 

New Delhi, May 9 (KNN) India’s oil marketing companies (OMCs) are incurring under-recoveries of nearly Rs 30,000 crore every month on petrol, diesel and LPG sales as retail fuel prices remain unchanged despite rising global crude prices, according to Sujata Sharma, Joint-Secretary, Ministry of Petroleum.

“If you ask about the under-recovery of the three, petrol, diesel and LPG combined, it is about Rs 30,000 crore in a month,” Sharma said.

OMC Losses Mount As Fuel Prices Stay Unchanged 

She said OMCs are purchasing crude at elevated prices but are not passing on the increase to consumers. To reduce pressure on fuel retailers, the government had earlier cut excise duties on petrol and diesel, sacrificing nearly Rs 14,000 crore in monthly revenue.

“Our OMCs are buying crude oil at higher rates but are not selling at corresponding rates to protect consumers,” Sharma said, as reported by The Hindu.

West Asia Tensions Push Crude Prices Higher 

The losses come as tensions in West Asia continue to disrupt shipping through the Strait of Hormuz, which handles nearly one-fifth of global energy trade. Benchmark Brent Crude futures for July 2026 were trading at USD 100.75 per barrel, up 0.7 percent from the previous close.

According to provisional data from the Petroleum Planning and Analysis Cell, petrol consumption rose 6.36 percent year-on-year in April, while diesel demand increased 0.25 percent.

LPG Prices Rise As Supply Prioritises Households 

LPG consumption, however, declined 15.7 percent in March and 7 percent in April as the government regulated supplies to commercial users to prioritise households.

Commercial LPG cylinder prices were raised by Rs 993 per cylinder on May 2, while 5-kg free trade LPG cylinder prices were increased by Rs 261, the second hike after a similar revision on April 1.

At the same briefing, Director, Ministry of Ports, Shipping & Waterways Opesh Kumar Sharma said 13 India-flagged vessels are currently operating in the western part of the Strait of Hormuz, including crude tankers, container ships and one LPG vessel.

(KNN Bureau)