India’s oil marketing companies (OMCs) have absorbed massive losses despite falling global crude prices. Petroleum Minister Hardeep Singh Puri revealed that OMCs lost ₹74,781 crore till June 30 by selling petrol, diesel, and LPG below cost. This figure equals nearly 1% of India’s GDP and highlights the scale of under‑recoveries.
During the West Asia war, crude prices surged above $100 per barrel. OMCs had to buy at those rates, and even now they are processing that expensive stock. As a result, the benefit of cheaper oil has not yet reached consumers. Petrol and diesel prices remain unchanged, though international crude has dropped by more than 20% from its peak.
Puri explained that price cuts will depend on sustained low crude prices for several weeks. Temporary dips are insufficient, since companies must recover losses and stabilize finances. He stressed that OMCs cannot immediately pass on relief while refining costly inventories.
The minister underlined that India’s energy security requires balancing consumer interests with company health. Shielding households from shocks meant OMCs absorbed losses equal to ₹74,781 crore, about 25% of their combined annual profits. The government is monitoring global trends closely, but cheaper fuel may take time as firms gradually absorb the impact of earlier purchases.
