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Q1 fuel losses could wipe out full-year profits for Indian oil marketing companies
Economy
Published on 11 May 2026
Subsidy-driven below-cost fuel pricing is now backfiring
After the Middle East war began, Indian state-owned oil marketing companies kept petrol, diesel and LPG supplies running with prices far below cost. But those under-recovery losses are building quickly, and analysts warn that Q1 fuel losses could erase entire fiscal-year earnings for the companies—unless pricing and reimbursement keep up.
- OMCs maintained uninterrupted fuel and LPG supplies during the shock
- Prices stayed well below cost, widening under-recovery losses
- Q1 losses may be large enough to remove full-year earnings
- The situation contrasts with global systems that used rationing or higher pricing
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times