Heavy Losses for Oil Companies

Union Petroleum Minister Hardeep Singh Puri stated that government-owned oil marketing companies are still facing significant losses. He revealed that losses on the sale of petrol, diesel, and LPG amounted to ₹74,781 crore as of June 30. Despite a decline in international crude oil prices, companies continue to process previously purchased expensive crude, which is contributing to the ongoing financial strain. He shared these details while addressing the media on Thursday.

Explaining the situation further, Puri said oil companies typically procure crude oil nearly two months in advance. The crude currently being processed was purchased in April or May, when global prices were significantly higher. Prices began to ease after developments such as the US-Iran agreement. When asked about potential reductions in domestic petrol and diesel prices, he noted that it would be reasonable to consider such changes only if global crude prices remain low for the coming weeks.