State-run Oil Marketing Companies (OMCs) are witnessing mounting financial stress as higher global crude oil prices and increasing losses on domestic LPG sales continue to impact their earnings, the government informed the Lok Sabha, as per The Moneycontrol news report.
The government said geopolitical tensions in West Asia remain a key factor driving volatility in global crude oil prices, impacting the financial position of public sector fuel retailers.
The Ministry of Petroleum and Natural Gas said Brent crude oil prices continue to fluctuate sharply and have increased again.
It added that the conflict in West Asia has not eased, keeping the geopolitical environment highly volatile.
The ministry said public sector oil marketing companies have incurred substantial losses on the sale of petrol, diesel and LPG.
According to the government, the cumulative under-recovery on domestic LPG for PSU OMCs stood at more than ₹51,000 crore as of June 30, 2026.
The government said the implicit subsidy on every 14.2-kg domestic LPG cylinder supplied to non-Ujjwala consumers is more than ₹500 per cylinder in July 2026.
The subsidy burden continues despite elevated crude oil prices and ongoing volatility in global energy markets.
The government attributed the pressure on OMCs to the continued rise in crude oil prices amid persistent geopolitical uncertainty in West Asia.
It said the unresolved conflict has contributed to fluctuations in crude prices, increasing the financial burden on state-run fuel retailers.
Read More: Why Oil-Linked Stocks React Differently When Crude Oil Prices Rise: Here's What Investors Need to Know!
The government's latest update highlights the continued financial strain on PSU oil marketing companies, with higher crude oil prices and mounting LPG under-recoveries remaining key challenges amid ongoing geopolitical uncertainty in West Asia.
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Published on: Jul 23, 2026, 4:48 PM IST
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