2 hrs ago
Oil Firms Face ₹530-Crore Daily Losses as Crude Prices Surge
India’s state-owned fuel companies are paying much more for crude oil.
However, petrol and diesel prices in stores have not changed enough to cover those costs.
This means the companies lose money when they sell fuel.
They are estimated to lose about ₹530 crore every day.
They are also losing money on household cooking-gas cylinders.
The losses grew because fighting and supply problems raised global oil prices.
Refining profits are still supported by strong refining margins.
ICRA said the companies may need to borrow more money if high prices continue.
ICRA estimates Indian state-owned oil firms are losing nearly ₹530 crore daily on fuel and LPG sales.
Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation reportedly lose ₹8 per litre on petrol and ₹9 on diesel.
Domestic LPG under-recovery was approximately ₹300 per cylinder in September 2026, after reaching about ₹500 in FY27’s first quarter.
The Indian crude oil basket rose to $117.4 per barrel on September 21, versus nearly $66 on average during FY26.
ICRA warned that higher crude costs could weaken cash flows and increase the companies’ short-term borrowing needs.
- Who
- Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation, as assessed by rating agency ICRA.
- What
- The state-owned oil marketing companies are facing large losses on petrol, diesel and domestic LPG sales.
- Where
- India, amid global supply disruptions linked to West Asia.
- When
- The assessment concerns September 2026, including crude prices recorded on September 21 and financial implications for FY27.
- Why
- Crude oil prices rose sharply while domestic retail fuel prices remained unchanged, increasing the companies’ under-recoveries.
Key facts
- Estimated daily loss
- Nearly ₹530 crore for the three state-owned oil marketing companies
- Petrol loss
- Approximately ₹8 per litre
- Diesel loss
- Approximately ₹9 per litre
- Domestic LPG under-recovery
- Approximately ₹300 per cylinder in September 2026
- Indian crude oil basket
- $117.4 per barrel on September 21, compared with nearly $66 on average during FY26
- Cumulative LPG buffer
- ₹61,940 crore as of June 30
- Export levies from September 16
- ₹20 per litre on diesel and ₹15 per litre on aviation turbine fuel
Sources
Related news
Rising Crude Prices Deepen Losses for India’s Oil Marketers
Brent Crude Surges Above $100, Pressuring Indian Fuel Marketers
Crude Spike Unlikely to Trigger Immediate Indian Fuel Hike
State-run oil firms poised for sharp second-quarter profit rebound
Oil Tops $100, Threatening India’s Import Bill and Finances
Crude Surges Above $100, Putting Five Sectors Under Pressure
Indian Oil, HPCL, BPCL Rise as Brent Crude Falls
Three Growth Stocks Near Highs With Low PEG Ratios
Petroleum Traders Seek Relief From Proposed UPI MDR Charges
Aadhaar Authentication Required for Subsidised LPG Refills From October
