New Delhi: The state-run Oil Marketing Companies (OMCs) are currently absorbing losses of around Rs 550 crore per day on the sale of Petrol, diesel, and domestic Liquid Petroleum Gas (LPG).
The Ministry of Petroleum and & Natural Gas said that It has been observed that Private Oil Marketing Companies are experiencing a decline of approximately 38% in High-Speed Diesel (HSD) offtake during the current month, across both retail outlets and bulk customers due to higher rates fixed by them.
This volume is shifting entirely to PSU oil marketing retail outlets. Coupled with this, PSU bulk customer volumes have also recorded a decline of approximately 29%, which is also migrating to retail outlets, the Ministry said.
The Ministry of Petroleum has referred to these losses as a cushion intended to save retail consumers from rising prices of fuel.
"This cushion is intended for the retail consumers: the households, the two-wheeler commuters, the farmers at the pump. It is not extended to industrial procurement, where pricing tracks international actuals as a matter of standing policy," the Ministry said in its statement.
"Under the direction of the Government, and as a deliberate act of consumer protection during the ongoing West Asia disruption, the Oil Marketing Companies have refrained from passing through the full international price into domestic retail sales," the Petroleum Ministry added.
The statement comes at a time when the Centre is heavily being criticized for hiking fuel and gas prices.
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The opposition parties are heavily criticizing the PM Narendra Modi Government for misleading people with data, despite the Centre's repeated assurances and claims that it is working towards securing the energy needs of the people.
Notably, the OMCs have made four hikes in the price of petrol and diesel. The companies have also increased the price of Compressed Natural Gas (CNG).
Launching a sharp attack on the Modi Government, Congress President Mallikarjun Kharge on Tuesday questioned why petrol and diesel rates have been kept high despite lower global crude oil prices in the past.
Highlighting the current scenario, he further pointed out that global crude oil prices are currently below $99 per barrel, yet retail fuel prices have risen significantly.
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“According to the PIB's official statement, exactly twelve years ago today, on May 26, 2014, when Prime Minister Narendra Modi assumed power, the price of India's crude oil was $108.05 per barrel, and the dollar-rupee exchange rate was 58.59 rupees. At that time, petrol was available at ₹71.51 and diesel at ₹56.71 per liter,” Kharge wrote.
Kharge claimed that despite crude oil becoming cheaper, petrol prices have increased by nearly 42.8 per cent while diesel prices have surged by around 67.9 per cent over the past 12 years.
It is interesting to note that India’s major state-run Oil Marketing Companies (OMCs) posted a cumulative standalone net profit of approximately Rs 19,470 crore in the fourth quarter of FY26 (January–March 2026). This represented a roughly 40% jump compared to the same period in the previous year.
The Petroleum Ministry in the same release highlighted that the country has more than adequate supplies of petrol and diesel to meet every domestic need, retail and industrial alike.
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India is the world’s fourth largest refiner, with an installed capacity of 258.1 million tonnes per annum across 22 operational refineries.
Domestic consumption was 243.2 million tonnes in FY 2025-26; petroleum product exports were 61.5 million tonnes in the same year, making India one of the largest exporters of refined products globally. There is no supply issue of any kind, the Ministry added.
Ends.
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