Rs 10,000,000,000 Loss Per Day! The Cost Of Not Hiking Petrol & Diesel Prices Is Severe For IOCL, HPCL, BPCL

Indian oil marketing companies are bearing heavy losses for not hiking petrol and diesel prices despite crude oil prices surging to around $110 per barrel. In fact, OMCs have not revised petrol and diesel prices since April 2022, even when the global economy was in a whirlwind of the Russia-Ukraine war, Israel-Gaza-Hezbollah war, trade wars, and the US-Israel-Iran war. The Oil Minister Hardeep Singh Puri, said OMCs are bearing a Rs 1,000 crore loss per day for selling final products at a lower cost. Hence, he supported Prime Minister Narendra Modi's latest appeal to reduce fuel usage wherever possible to lessen the burden.

HPCL, BPCL, Indian Oil Losses:

According to Puri, India is among very few countries that have not raised energy prices and have maintained steady supplies to the citizens even as we see crises unfold in many parts of the world.

"Our energy sector is absorbing the brunt of the impact," said Puri.

He further highlighted that OMCs are buying crude, gas and LPG at higher cost, but in order to protect consumers, they are selling final products at lower cost leading to massive mounting losses of upto Rs 1,000 crore per day. However, the OMCs have ensured uninterrupted energy imports and supply.

Even after this decision, the estimated OMC under-recoveries during this quarter itself are expected to surge to Rs 2,00,000 crores and losses are expected to be around Rs 1,00,000 crores, as per the minister.

Going by this, Indian OMCs are bearing Rs 30,000 crore to Rs 31,000 crore losses per month.

"We have managed to protect the more than 60 million consumers who visit the retail stations everyday. Still further, Modi govt reduced excise duties on retail fuel and saw revenue losses of Rs 14,000 crore in a month," said Puri.

Thereby, Puri said, "Prime Minister Narendra Modi's appeals to the citizens to curtail use of petrol and diesel, use public transport where possible, and car pool as much as possible."

Explaining he said, "Measures such these will help the nation conserve energy, save on the energy import bill and overcome the challenges arising out of the serious military conflict involving many energy producing nations."

Oil prices hit near $150 per barrel following the Russia-Ukraine war but cooled to $70 per barrel last year before spiking to $120 per barrel in March-April month this year. Throughout this, OMCs have not changed fuel prices.

Notably, fuel prices are calculated taking into consideration international crude prices, excise duty, VAT, cess, currency fluctuations and other costs.

Petrol Prices Today:

City	Price (per Liter)	Price Change
New Delhi	₹94.77	0.00
Kolkata	₹105.45	0.00
Mumbai	₹103.54	0.00
Chennai	₹100.80	-0.05
Gurgaon	₹95.36	-0.15
Noida	₹95.05	0.00
Bangalore	₹102.96	+0.04
Bhubaneswar	₹101.11	0.00
Chandigarh	₹94.30	0.00
Hyderabad	₹107.46	0.00
Jaipur	₹104.48	-0.24
Lucknow	₹94.65	-0.08
Patna	₹105.23	0.00
Thiruvananthapuram	₹107.48	0.00

Diesel Prices Today

City	Price (per Liter)	Price Change
New Delhi	₹87.67	0.00
Kolkata	₹92.02	0.00
Mumbai	₹90.03	0.00
Chennai	₹92.39	-0.01
Gurgaon	₹87.83	-0.14
Noida	₹88.19	0.00
Bangalore	₹90.99	0.00
Bhubaneswar	₹92.69	0.00
Chandigarh	₹82.45	0.00
Hyderabad	₹95.70	0.00
Jaipur	₹89.99	-0.22
Lucknow	₹87.76	-0.10
Patna	₹91.49	0.00
Thiruvananthapuram	₹96.48	0.00