New Delhi: Fuel retailers in India are losing ₹20 per litre on petrol and ₹100 a litre on diesel due to the ongoing West Asia crisis, an oil ministry official revealed. Despite this, state-run firms continue to shield consumers from oil price volatility by maintaining pump rates.
Experts warn that such volatility could be unsustainable for oil refiners if the crisis prolongs and international oil prices remain above $70-80 a barrel. They predict that oil companies may partially pass on their revenue losses to consumers after assembly elections, which are scheduled to conclude on April 29.
Benchmark crude oil Brent has surged by nearly 40% to $101.91 a barrel, with prices hovering over $103 on Thursday. The petroleum ministry has refuted a social media report claiming that petrol and diesel rates could be raised by ₹25-28 a litre after the election.
State-run IOC, BPCL, and HPCL enjoy a near monopoly in domestic fuel retail, with about 90% market-share. The petroleum ministry's joint secretary, Sujata Sharma, has given a daily update on the fuel supply situation, revealing that OMCs are incurring under-recoveries of ₹20 a litre on petrol and ₹100 a litre on diesel.
To compensate OMCs for their revenue losses, the government has slashed excise duty on petrol and diesel by ₹10 per litre each and imposed levies on exports of diesel and aviation turbine fuel (ATF).
