OMCs Face ₹530 Crore Daily Loss as Crude Surges

Oil Companies Face ₹530 Crore Daily Hit as Crude Surges

September 29, 20261 Mins Read

Indian oil marketing companies (OMCs) are facing an estimated ₹530 crore daily loss as crude oil prices surge while domestic petrol, diesel and LPG prices remain unchanged. The estimate comes from rating agency ICRA and covers Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL).

The Indian crude basket rose to $117.4 per barrel on September 21, 2026, compared with an average of around $66 per barrel in FY2025-26. ICRA estimates negative marketing margins of ₹8 per litre on petrol and ₹9 per litre on diesel, while domestic LPG under-recoveries have reached around ₹300 per cylinder.

Petroleum Minister Hardeep Singh Puri has highlighted the pressure on OMCs, saying that “somebody has to pay” as the gap between international crude costs and domestic fuel prices widens.

For the companies, prolonged high crude prices could weigh on profitability, cash flows and working-capital requirements. ICRA has also noted that stronger refining margins provide some offset, but the marketing losses remain significant.

Disclaimer: This article is for information purposes only and is not investment advice.

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