Govt-owned fuel retailers lose Rs 5 per litre on petrol as oil tops $100 per barrel
State-owned fuel retailers in India are facing significant financial losses as international crude oil prices have surged past $100 per barrel. Despite rising import costs, retail prices for petrol and diesel have remained unchanged for several months, forcing companies to absorb the difference.
Why it matters
The sustained under-recovery on fuel prices threatens the profitability of state-run oil companies and could impact India's broader trade deficit and currency stability.
State-owned fuel retailers are losing around Rs 5 per litre on petrol and Rs 23 per litre on diesel as renewed tensions in West Asia pushed international crude oil prices above $100 a barrel, analysts said on Wednesday.Brent crude, the global benchmark, rose 2.5 per cent to above $100 a barrel, while US West Texas Intermediate gained nearly 2 per cent to around $95. Brent last touched the $100 mark on July 23.India, the world's third-largest oil importer and consumer, imports more than 88 per cent of its crude oil requirements. Higher crude prices increase the country's import bill and can put pressure on the trade deficit and the rupee.With retail petrol and diesel prices unchanged, fuel retailers are absorbing the higher international costs.
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