# 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.
- Title: Bite the bullet: Allow fuel price hikes to ease OMC losses
- Summary: 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…
- Keywords: omc, crude oil, fuel prices, hpcl, bpcl, fiscal deficit, india, business, money, news, Bite, bullet
- Source: Financialexpress — https://financialexpress.com/opinion/bite-the-bullet-allow-fuel-price-hikes-to-ease-omc-losses-as-crude-surges/4369946
- Author: The Financial Express
- Published: 2026-10-26T17:02:19+00:00
- Read time: 1 min
- Topics: omc, crude oil, fuel prices, hpcl, bpcl, fiscal deficit, india, business, money, news
## 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.
## Key takeaway

India should allow fuel price hikes to reduce oil marketing companies' losses amid rising crude oil costs.