Loss of ₹ 1,700 crore every day to oil companies: Loss of ₹ 1 lakh crore in 10 weeks, reason – did not increase the prices of petrol and diesel amid global tension.

Due to the ongoing war in West Asia, international crude oil prices have increased by 50%. Despite this, the prices of petrol and diesel in the Indian market have remained stable at the level of the last two years.

Government oil companies are bearing huge financial burden i.e. losses to protect the country’s consumers from global energy shock. According to PTI sources, these companies have suffered a loss of more than ₹1 lakh crore in the last 10 weeks.

Companies incur daily loss of ₹1,700 crore

Indian Oil (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) are incurring a daily loss of ₹1,600 to ₹1,700 crore on the sale of petrol, diesel and cooking gas (LPG). Despite the increase in the cost of crude oil, petrol is available at the old rate of ₹ 94.77 and diesel at ₹ 87.67 per litre.

Government kept prices under control by reducing duty

India imports 40% of its crude oil, 90% of LPG and 65% of natural gas. Due to the war, supply lines have been disrupted and costs have increased. Countries like Japan and Britain have increased fuel prices by up to 30%, but in India the government has kept the prices under control by reducing excise duty. Duty on petrol has been reduced from ₹13 to ₹3 and on diesel from ₹10 to zero.

Pressure is increasing on the balance sheets of companies

The only source of income for oil companies is the sale of fuel, from which they buy crude oil and build infrastructure. Due to heavy losses, companies may now have to take loans for working capital.

Experts say that if prices remain like this for a long time, future projects like refining expansion and clean fuel mission may be affected.

Now in the hands of the government decision to increase prices

Sources say that now the increase in prices of petrol and diesel has become inevitable. However, this is a political decision, so the final decision on when and by how much the prices will be increased has to be taken by the Central Government.

The government is currently bearing the burden of ₹14,000 crore every month through reduction in excise duty.

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