Fuel Price Hike Helps Oil Companies Cut Daily Losses to Rs 750 Crore: Govt

The Indian Public sector Oil Marketing Companies (OMCs) have managed to reduce their losses to Rs 750 crores a day down from Rs 1000 crores a day earlier amid the ongoing West Asia crisis that has been putting pressure on the oil companies due to disruption in crude oil supplies.

The update was given to the media by Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas during an Inter-Ministerial press briefing on Monday.

This development comes after the Public sector oil marketing companies (OMCs) increased petrol and diesel prices by Rs 3. The Compressed Natural Gas prices were also increased by Rs. 2 in cities like Mumbai and Delhi.

Last week, Union Minister of Petroleum and Natural Gas, Hardeep Singh Puri said that oil marketing companies (OMCs) were collectively losing around Rs 1,000 crore every day as they continue to sell petrol, diesel and LPG below cost.

During the briefing, Sharma added that refineries were operational, crude inventories were sufficient, and there had been no dry-out at any petrol or diesel retail outlet or LPG distributorship.

Why Did Panic Buying Impact Fuel Supply and How Did the Government Respond?

Sharma said panic buying had been reported at some locations due to rumours, but the government had moved quickly to replenish stocks and ensure uninterrupted supply.

"Every possible effort is being made to keep the supply of petrol and diesel normal," she said, adding that domestic cooking LPG supply was also being maintained without disruption. Commercial LPG supply, however, was currently running at 70% of normal levels.

She said the government had continued to expand gas infrastructure even during the crisis.

From March onwards, about 737,000 PNG connections had been gasified, while infrastructure for 276,000 more connections was already in place.

More than 776,000 people had registered for new connections, though over 58,000 consumers had surrendered their PNG connections till the previous day.

How Are Oil Companies Managing LPG Delivery and Fuel Supply Amid the Ongoing Crisis?

On LPG delivery, Sharma said that in the last four days alone, around 172,000 domestic cooking cylinders had been delivered, while bookings had also seen a sharp rise during the same period.

She said urea plants were operating at 96% of their natural gas requirement and supply to City Gas Distribution entities had been enhanced to 80%. Commercial sectors were also being fully supported by GAIL and other suppliers.

Sharma added that refineries had sold 8,730 tons of propylene and 3,420 tons of butyl acrylate since the beginning of the month, supporting downstream industries.

As part of enforcement, PSU oil companies had conducted surprise inspections at nearly 2,800 retail outlets and LPG distributors in the last four days to curb malpractices and hoarding.

Sharma also appealed to citizens not to indulge in panic buying and to purchase fuel only as per requirement. She said the government was making every possible effort to ensure availability and delivery of petrol, diesel and LPG across the country.

(With inputs from ANI)