From Financialexpress · The Financial Express · · 1m 20s
Bite the bullet: Allow fuel price hikes to ease OMC losses
India's fuel prices must rise to cut OMC losses as crude oil surges.
In brief
India's fuel prices must rise to cut OMC losses as crude oil surges. India should allow fuel price hikes to reduce oil marketing companies' losses amid rising crude oil costs. Originally reported by Financialexpress.
India faces rising crude oil prices
India faces rising crude oil prices and supply risks amid West Asia conflict, pressuring refiners and government finances.
Refiners pay $120 a barrel for crude
Indian refiners are paying an average of $120 a barrel for crude oil, the highest monthly average in 12 years.
Sourcing Russian oil no longer viable
The option of sourcing cheaper Russian oil is no longer available, while US sanctions on purchases from Russia and Iran add uncertainty.
OMCs lose Rs 25 a litre
With crude oil trading above $110 a barrel, OMCs are estimated to be incurring under-recoveries of Rs 25 a litre.
HPCL reports Rs 8,639.45 crore loss
HPCL reported a loss of Rs 8,639.45 crore for April-September, against a profit of Rs 7,970 crore in the corresponding period of FY26.
BPCL profit falls 77% year-on-year
BPCL’s consolidated net profit in H1FY27 fell 77% year-on-year to Rs 2,990.35 crore.
Government needs transparent fuel pricing
The government needs a transparent framework for managing fuel-price shocks, offering targeted support to vulnerable households rather than open-ended subsidies.
At a glance
India should allow fuel price hikes to reduce oil marketing companies' losses amid rising crude oil costs.
