Fuel business turns debt-heavy for oil companies

State-run oil marketing companies BPCL, Indian Oil Corporation, and HPCL are incurring massive losses of around ₹1,600–1,700 crore per day. Despite a sharp rise in global crude oil prices due to the West Asia conflict, domestic fuel prices remain unchanged, putting huge financial pressure on these companies. In the last 10 weeks alone, losses are estimated to cross ₹1 lakh crore.

These OMCs are forced to buy crude oil at higher prices and sell fuel at controlled rates, leading to heavy cash flow stress and increased borrowing. While discussions on fuel price revision continue, the government has not taken any decision so far. However, experts believe that a price correction may become inevitable if the current situation persists.