State-owned oil marketing companies are bleeding under massive losses to keep petrol, diesel and cooking gas rates far below cost after the Middle East conflict began. Estimates put under-recoveries at Rs 1,600–1,700 crore per day, pushing total losses to well over Rs 1 lakh crore in just 10 weeks. Even with input crude prices up by about 50%, petrol and diesel are still sold at two-year-old rates, forcing financial pressure, possible extra borrowing and potential future price hikes.
Indian oil PSUs are reportedly losing about ₹30,000 crore every month on petrol, diesel and LPG as international fuel prices rise sharply. Some retail prices have been adjusted, but regular petrol and diesel rates remain unchanged, keeping under-recoveries high. Indian Oil, HPCL and BPCL face pressure on earnings, and their shares have fallen.
Your news, in seconds
Get the Beige app — every story in 60 words, updated hourly. Free on iOS & Android.
Swipe through stories, personalise your feed, and save articles for later — all on the app.
