India’s first petrol and diesel retail price increase since 2022 has not reassured investors. HPCL and BPCL shares fell up to 3% after a up to Rs 3 per litre adjustment that analysts say barely covers rising costs. With Brent crude above $100 and West Asia tensions persisting, ICRA estimates oil marketing companies could still lose about Rs 500 crore daily even after the hike, implying enormous quarterly under-recoveries and renewed pressure on government policy.
Petroleum and Natural Gas Minister Hardeep Singh Puri told the CII Annual Business Summit India has no fuel shortage and said LPG production has been scaled up to 56,000 tonnes. Yet he cautioned that global pricing is squeezing oil companies’ profitability, warning of fiscal strain that could limit how long OMCs can carry losses.
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