Daily Under-Recovery for OMC Drops to Rs 600 Crore as Fuel Prices Rise Repeatedly
मुख्य बातें
- •Daily under-recoveries of oil marketing companies have fallen to Rs 600 crore from Rs 1,000 crore due to repeated fuel price hikes.
- •The reduction is attributed to the government's decision to raise fuel prices, reducing the gap between crude costs and retail prices.
- •State-run OMCs like IOC, BPCL, and HPCL were previously losing Rs 1,000 crore daily due to subsidized fuel sales.
- •The government aims to minimize subsidy burden and align domestic prices with global rates through incremental price adjustments.
Daily under-recoveries faced by state-run oil marketing companies (OMCs) have dropped to Rs 600 crore, down from Rs 1,000 crore earlier, according to industry reports. The sharp decline follows a series of fuel price hikes implemented by the government over recent weeks. These adjustments have helped reduce the gap between the cost of imported crude oil and the retail prices charged to consumers, thereby lowering the financial burden on OMCs.
Before the price increases, OMCs were incurring daily losses of around Rs 1,000 crore due to the rising gap between global crude prices and controlled domestic fuel rates. The government had been absorbing a significant portion of these losses through subsidies, but rising international oil prices and a weaker rupee compounded the financial strain. By raising fuel prices incrementally—primarily on diesel and petrol—the government has aimed to reduce the subsidy burden while aligning domestic prices more closely with international market rates.
