Indian OMCs incur ₹530 cr daily losses; ₹8 per litre on petrol, ₹9 on diesel and ₹300 on LPG: ICRA

Indian oil market companies (OMCs) are estimated to be incurring under-recoveries of ₹8 per litre on petrol, ₹9 per litre on diesel sales and nearly ₹300 per domestic LPG (liquefied petroleum gas) cylinders, according to credit rating agency ICRA.

The combined impact translates into an estimated daily loss of about ₹530 crore from the sale of petrol, diesel and cooking gas, ICRA analysts said.

“The escalation of the conflict in West Asia and the [resulting] disruption to key oil supply routes has led to a sharp increase in crude oil prices, which has also resulted in sizeable marketing and LPG under-recoveries for oil marketing companies,” said Prashant Vashisht, senior vice-president and co-group head of corporate sector ratings at ICRA.

The pressure on LPG costs has been amplified by supply dynamics in the global market.