OMCs still under-recovering Rs 750 crore daily on petrol, diesel and LPG: Govt

New Delhi: Oil marketing companies are under-recovering Rs 750 crore a day on the sale of petrol, diesel and domestic LPG cylinders below market prices, govt said on Monday.

Before the price of petrol and diesel was raised by Rs 3 per litre late last week, the under-recoveries incurred by OMCs were estimated at Rs 1,000 crore a day.





“The losses of OMCs would be around Rs 750 crore a day, taking petrol, diesel and domestic LPG together,” said Sujata Sharma, joint secretary in the ministry of petroleum and natural gas, at a media briefing on the developments in West Asia. She added that there was no proposal before govt to bail out oil companies - IndianOil, Bharat Petroleum and Hindustan Petroleum - for selling petrol and diesel below market prices.


Sharma also refused to comment on the possibility of another hike in petrol and diesel prices and said she could only speak about the situation on a particular day.


Speaking at the CII Business Summit last week, petroleum minister Hardeep Singh Puri had said that oil marketing companies were incurring daily losses of Rs 1,000 crore, adding that it was not sustainable in the long run. With disruption in the key energy passage, the Strait of Hormuz, continuing and global crude prices still hovering 50% above pre-conflict levels, countries across the world have increased petrol and diesel prices by 20-80%.
Ready to Make a Smarter Property Decision? Build Your Legacy with TOI Homes.