OMC Losses Ease To Rs 600 Crore A Day As Fuel Prices Hiked Four Times In 10 Days

Last Updated:May 25, 2026, 16:17 IST

Petroleum Minister Hardeep Singh Puri had earlier said that state-run fuel retailers were suffering daily losses of around Rs 1,000 crore.

Fuel Price Hike: State-run oil marketing companies (OMCs) have managed to reduce their daily losses to below Rs 600 crore per day following successive hikes in petrol and diesel prices, the government said on Monday.

Speaking at an inter-ministerial briefing on Monday, Petroleum and Natural Gas Ministry Joint Secretary Sujata Sharma said that oil marketing companies were still incurring losses despite the recent fuel price revisions.

“OMCs are facing losses. The loss to them is slightly less than Rs 600 crore. OMCs are meant to make profits, not losses," she said.

Her remarks came after OMCs increased petrol and diesel prices for the fourth time in less than two weeks.

Petrol prices were hiked by Rs 2.61 per litre and diesel by Rs 2.71 per litre. In Delhi, petrol prices rose to Rs 102.12 per litre from Rs 99.51, while diesel prices increased to Rs 95.20 per litre from Rs 92.49.

Petrol and diesel prices were first raised by Rs 3 per litre each on May 15, followed by another increase of around 90 paise per litre on May 19.

With the latest revision, cumulative hikes in petrol and diesel prices since May 15 have nearly touched Rs 7.5 per litre, intensifying concerns over inflation, transportation costs and the broader impact on household budgets.

The recent price hikes come amid continued pressure on OMCs due to elevated crude oil prices triggered by the West Asia crisis and the prolonged freeze in retail fuel prices over the last four years.

At the peak of the crude rally, under-recoveries were estimated at nearly Rs 24 per litre on petrol and Rs 30 per litre on diesel. OMC losses had reportedly touched around Rs 1,000 crore per day before phased price hikes were initiated earlier this month.

Petroleum Minister Hardeep Singh Puri had earlier said that state-run fuel retailers were suffering daily losses of around Rs 1,000 crore due to unchanged retail prices.

However, according to analyst estimates cited by NDTV Profit, the four fuel price hikes implemented so far have helped OMCs recover only around 44% of the losses incurred during the crude spike period, suggesting a significant portion of the burden is still being absorbed by refiners.

At the briefing, Sharma also said that the government was taking steps to ensure uninterrupted fuel supplies despite disruptions linked to the West Asia crisis.

“Despite the West Asia crisis affecting crude oil, LPG and natural gas imports, efforts are being made to ensure smooth domestic petroleum supplies. States and Union Territories have been urged to monitor the situation closely," she said.

India imports more than 85 per cent of its crude oil requirements, making domestic fuel prices highly sensitive to global crude movements and fluctuations in the rupee against the US dollar.

(With inputs from agencies)

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