Oil companies lost Rs 74,781 crores (Img: AI generated)
New Delhi: Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Thursday said oil marketing companies (OMCs) incurred losses of Rs 74,781 crore by selling petrol, diesel and LPG below cost during the recent spike in global crude oil prices triggered by the West Asia conflict.
He added that any decision on reducing retail fuel prices would depend on whether international crude prices remain low over the coming weeks.
Addressing a press conference, Puri said global crude prices have eased in recent weeks, but OMCs are still refining crude purchased during the peak of the crisis, when prices were significantly higher.
He explained that oil companies generally procure crude oil nearly two months in advance. As a result, the crude currently being processed was bought in April and early May, when international prices had surged sharply due to geopolitical tensions.
Responding to questions on a possible reduction in petrol and diesel prices, the minister said it would be a valid consideration if crude prices remain stable at lower levels over the next few weeks.
According to Puri, international crude prices began declining only in the second half of June after the United States and Iran reached an understanding to de-escalate the conflict in West Asia. He indicated that the impact of lower crude prices on domestic fuel rates would become clearer once refiners begin processing cheaper crude inventories.
