The recent increase in fuel prices has helped state-run oil marketing companies reduce their mounting losses, although the financial burden remains substantial, according to the Ministry of Petroleum.
Speaking on the issue, Sujata Sharma, Joint Secretary at the Ministry of Petroleum, said the daily losses of public sector oil companies have declined from nearly Rs 1,600 crore to around Rs 750 crore following the recent fuel price hike of approximately Rs 3 per litre.
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“Currently, the daily loss incurred by state-run oil companies stands at approximately Rs 750 crore. This figure includes the import costs for petrol, diesel, and LPG,” Sharma said on Tuesday.
Despite the reduction in losses, the companies continue to face significant financial pressure due to rising global energy prices and high import costs.
Sharma noted that the under-recoveries and financial losses of oil companies remain considerable. However, the government has not yet considered any financial relief package for the sector.
“Their under-recoveries and financial losses are significant. No bailout package for oil companies has been considered at this juncture,” she added.
The latest fuel price revision comes amid growing concerns over the financial health of oil marketing firms, which have been absorbing a major portion of rising international crude oil prices to shield consumers from sharper increases in retail fuel rates.
(This story is published from a syndicated feed)
