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[BUSINESS] · India · 3 sources

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Indian oil marketing companies face daily losses of Rs 530 crore

oil marketing companies crude oil prices petrol margins diesel margins LPG losses

Indian oil marketing companies (OMCs) are facing significant financial pressure due to rising crude oil prices and stagnant domestic retail rates. According to a report by rating agency ICRA, OMCs are experiencing negative marketing margins of Rs 8 per litre for petrol and Rs 9 per litre for diesel.

Additionally, losses on domestic LPG have reached approximately Rs 300 per cylinder in September. These under-recoveries are driven by the surge in international crude prices, which have been influenced by geopolitical tensions and supply disruptions in West Asia. The Indian crude basket rose to USD 117.4 per barrel on September 21, 2026, compared to an average of approximately USD 66 per barrel in the previous year.

ICRA estimates that these factors are resulting in daily losses of approximately Rs 530 crore for the OMCs.

Entities

ICRA · Oil Marketing Companies

Sources

Business News | OMCs’ Petrol, Diesel Margins Turn Negative, LPG Losses Reach Rs 300/cylinder: ICRA [www.latestly.com]
Why could oil companies be losing Rs 530 crore a day despite unchanged fuel prices? [www.dnaindia.com]
OMCs face Rs 530 crore daily loss as fuel prices remain unchanged [www.newindianexpress.com]