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Public sector oil marketing companies are estimated to have suffered a loss of about Rs 30,000 crore since mid-March amid sharp fluctuations in global crude oil prices due to tensions in West Asia. Sources gave this information on Friday.

Public sector petroleum marketing companies - Indian Oil, BPCL and HPCL have maintained uninterrupted supply of petrol, diesel and LPG even during this crisis, even though the cost of raw materials has increased by more than 50 percent at several stages.

Loss of Rs 700 crore every day

There was huge volatility in the global crude oil market due to increasing tensions in West Asia and uncertainty over the supply of oil and gas through the Strait of Hormuz. During this period, a sharp increase in the prices of Brent crude was also recorded. Despite this, there has been no change in retail fuel prices in India since February 28. Sources familiar with the matter said that in April, a loss of about Rs 18 per liter was recorded on petrol and about Rs 25 per liter on diesel. In this way, oil companies had to suffer a loss of Rs 600 to 700 crore per day.

Loss of Rs 30,000 crore in 1.5 months

However, due to government intervention, these companies got some relief due to reduction in excise duty and they were successful in limiting the total loss to about Rs 30,000 crore. Sources said that if the government had not reduced the excise duty on petrol and diesel by Rs 10 per liter, the loss of oil companies could have increased to around Rs 62,500 crore. According to sources, additional costs like transportation costs, emergency crude oil purchases, insurance premiums and refinery adjustments also increased the pressure on companies.

Crude oil had gone up to $144

However, the supply of fuel and LPG remained normal across the country. The price of Brent crude was around $ 72 per barrel before the start of the West Asia conflict on February 28. But as the conflict intensified and the movement of ships through the Strait of Hormuz was disrupted, there was a sharp rise in prices. The situation became such that the prices of Brent crude reached around $ 144 per barrel for some time. However, with the hope that the tension will subside, it has now softened to around $100 per barrel.

Piyush Pandey

Mainly responsible for the news of Supreme Court, Finance Ministry and Election Commission of India. More than 22 years of experience in journalism. Served in Hindustan, Amar Ujala, Dainik Bhaskar and Aaj. Apart from the news channel and newspaper, he played the responsibility in the digital platform of Dainik Bhaskar, while on the invitation of All India Radio, he interviewed many distinguished people.

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