Recent fuel price hike reduced OMCs' daily losses on retail sales by ₹250 cr: official

New Delhi: State-owned oil firms have reduced their combined daily losses to ₹750 crore from ₹1,000 crore after a ₹3-per-litre fuel price hike from Friday, but remain significantly under-recovered, a government official said.

Addressing the media on Monday, Sujata Sharma, joint secretary, petroleum ministry, said post the recent hike in petrol and diesel, the cumulative daily loss of the three OMCs—Indian Oil Corp. Ltd, Bharat Petroleum Corp. Ltd and Hindustan Petroleum Corp. Ltd—stands at ₹750 crore.

The increase in retail fuel prices is seen as a partial correction aimed at narrowing under-recoveries faced by state-owned fuel retailers, which have absorbed a significant portion of rising international costs without fully passing them on to consumers.

The daily losses—borne primarily by public sector fuel retailers—had surged in recent months due to elevated crude oil prices and a mismatch between international fuel costs and domestic retail prices, industry officials said.

Petroleum minister Hardeep Singh Puri had said last week that amid high energy prices and stagnant pump prices of petrol and diesel, the OMCs are facing a daily under-recovery of ₹1,000 crore and a quarterly under-recovery of ₹1 trillion.

On the question of India's oil procurement from Russia despite the end of the waiver on the US sanctions, Sharma indicated that India would continue to procure from Russia and has never stopped buying crude from the country.

"Regarding purchases from Russia, we have been purchasing earlier, during the previous phases, and we continue now as well. These are commercial decisions taken by oil marketing companies based on national requirements and economic considerations," she said.

Over the weekend, the US waiver on sanctions on Russian oil expired. The US has not yet spoken of any extension of the waiver.

"For Kharif 2026, the fertilizer requirement has been assessed by department of agriculture and farmers welfare at 39.05 million tonnes (mt), against this stock as on today is around 20.09 mt (more than 51%), significantly higher than the usual level of about 33%," she added. She assured that the country is in a much better position in case of fertilizers and there would not be any shortage during the upcoming kharif season starting in June.

She further added that India has secured about 1.35 mt of DAP and 700,000 tonnes of NPK from the SOH (Strait of Hormuz) to arrive at Indian ports in May and June. Also, Indian fertilizer companies have issued an aggregated global tender for the procurement of 400,000 tonnes of Triple Superphosphate (TSP) and 300,000 tonnes of Ammonium Sulphate. These will help to ensure adequate availability during the peak season.

Also, Indian fertilizer companies have issued an aggregated global tender for the procurement of 536,000 tonnes of ammonia and 594,000 tonnes of sulphur. These will help to ensure adequate availability during the peak season.

"Availability of inputs for production of fertilizers i.e. urea and P&K fertilizers is being regularly reviewed by the department of fertilizers," she added.

Freight rates for LPG cargoes have climbed from about $94 per tonne during the pre-war period to $207 per tonne as on Friday. Also, shipping costs for crude oil have increased. Rates for very large crude carriers (VLCCs), which transport bulk crude shipments, have risen from $14 per tonne to $28.64 per tonne as on 15 May.

Container freight rates have also risen, with costs for a twenty-foot equivalent unit (TEU) container rising to nearly $2,000 from around $203, suggesting broader supply-chain disruptions beyond the energy sector. The increase in shipping and freight charges also led to higher import costs for oil marketing companies and refiners, particularly for LPG, which India imports in large volumes to meet domestic demand. Higher logistics expenses may also put pressure on retail fuel margins if global crude prices remain elevated.