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State oil firms face Rs 1,700 crore daily losses as fuel prices stay frozen for 10 weeks
Economy
Published on 14 May 2026
Three firms absorb over Rs 1 lakh crore under-recovery
State-owned oil marketing companies are bleeding under massive losses to keep petrol, diesel and cooking gas rates far below cost after the Middle East conflict began. Estimates put under-recoveries at Rs 1,600–1,700 crore per day, pushing total losses to well over Rs 1 lakh crore in just 10 weeks. Even with input crude prices up by about 50%, petrol and diesel are still sold at two-year-old rates, forcing financial pressure, possible extra borrowing and potential future price hikes.
- Under-recovery for petrol, diesel and LPG totals Rs 1,600–1,700 crore daily
- Losses have piled up to well over Rs 1 lakh crore in 10 weeks
- Petrol and diesel prices remain at two-year-old rates despite ~50% higher crude
- Cooking gas LPG prices were raised in March by Rs 60 per cylinder, but remain below cost
- OMCs may need higher working-capital borrowing if elevated crude persists
- A fuel price hike is now described as politically inevitable, with timing to be decided
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times