OMCs Continue Facing ₹750 Crore Daily Under-Recoveries Despite Recent Fuel Price Hike

India’s state-run oil marketing companies continue to operate under significant financial pressure as daily under-recoveries remain close to ₹750 crore despite recent fuel price increases, according to the Petroleum Ministry. 

Fuel Retailers Still Under Financial Stress 

Sujata Sharma, Petroleum Secretary of India, said the recent revision in fuel prices has lowered daily losses from nearly ₹1,000 crore earlier, but state-run fuel retailers are still absorbing substantial under-recoveries. 

The financial pressure comes at a time when global crude oil and LNG supply chains have remained disrupted for nearly one-and-a-half months due to the ongoing West Asia conflict. 

Despite the volatile global environment, Sharma clarified that the government is not considering any bailout package for public sector oil retailers at present. 

Government Says Fuel Supply Situation Stable 

Even with international supply disruptions, the government maintained that domestic fuel availability remains stable across the country. 

Sharma said authorities and oil companies are continuously monitoring inventory and distribution systems to avoid supply disruptions. 

She stated that “we have sufficient inventory” and added that “no dry-out situation is being reported” anywhere in the country. 

According to the Petroleum Secretary, fuel consumption patterns are also shifting, with bulk demand increasingly moving towards retail fuel pumps to ensure uninterrupted consumer access. 

LPG Supplies Maintained Despite Global Volatility 

The government also highlighted that LPG distribution operations have continued normally despite ongoing pressure in international energy markets. 

Over the last 4 days, oil companies delivered nearly 1.72 lakh LPG cylinders against around 1.69 lakh booking requests, indicating stable supply execution. 

The comments come amid heightened volatility in global energy markets, with continued geopolitical tensions in West Asia increasing pressure on India’s fuel import costs and domestic oil retailers. 

Read More: Petrol, Diesel Prices Today: Fuel Prices Increased by 90 Paise Per Litre on May 19, 2026! 

Conclusion 

While India’s fuel supply chain remains operationally stable, state-run OMCs continue facing sizeable financial stress as global energy disruptions and elevated import costs weigh on the sector. 

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