Fuel Prices Hike; OMCs Still Losing ₹600 Cr Daily

Oil marketing companies are continuing to incur significant losses, amounting to about Rs 600 crore each day. This financial strain persists despite recent increases in fuel prices aimed at mitigating these issues. The government has also absorbed a substantial fiscal impact, having forgone nearly Rs 14,000 crore in tax revenue.

This sacrifice in tax revenue is a direct result of reducing excise duty by Rs 10 per litre on both petrol and diesel. These cuts were implemented on March 27, 2026, in response to escalating global crude oil prices. The volatility is largely attributed to ongoing tensions in West Asia, which have disrupted India's fuel imports. Specifically, 40% of crude oil, 90% of LPG, and 65% of natural gas imports are affected. Despite these challenges, efforts are being made to ensure uninterrupted supplies within the country.

Authorities are actively monitoring the fuel supply situation and addressing concerns of panic buying observed in some states, including parts of Gujarat, Maharashtra, and Uttar Pradesh. These instances are partly due to agricultural and bulk demand. To prevent shortages, petrol and diesel stocks at retail outlets have been replenished. Furthermore, domestic LPG production has reached 50,000 tonnes per day, and LPG deliveries in the past four days have exceeded bookings.