India OMCs Face Fuel Losses
Analysis based on 7 articles · First reported Apr 02, 2026 · Last updated Apr 03, 2026
Oil marketing companies in India are facing significant losses due to the surge in Brent Crude prices caused by the West Asia conflict, while the government of India attempts to stabilize retail fuel prices through excise duty reductions. This situation could impact the profitability of these companies and potentially lead to future price adjustments if the losses become unsustainable.
Oil marketing companies in India are experiencing substantial losses on petrol and diesel sales, with under-recoveries of approximately Rs 24 per litre on petrol and Rs 104 per litre on diesel. This is primarily due to the sharp increase in Brent Crude oil prices, which have surged from around USD 65 to over USD 100 per barrel, driven by the ongoing conflict in West Asia. The India — Ministry of Petroleum and Natural Gas, represented by Sujata Sharma, confirmed that retail fuel prices in India remain unchanged, with the government having reduced excise duty to help stabilize prices. Oil marketing companies are absorbing the difference, leading to these losses. Despite the financial strain, the government has assured stable fuel and natural gas supplies across the country, with refineries operating at maximum capacity and sufficient crude inventories for the next sixty days. Efforts are also underway to expand Piped Natural Gas (PNG) infrastructure to reduce dependence on LPG.
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