Indian OMCs Narrow Losses Amid West Asia Crisis

The Indian Public sector Oil Marketing Companies (OMCs) have successfully minimized their daily financial losses to Rs 750 crores, down from Rs 1000 crores, amidst the ongoing disruptions caused by the West Asia crisis. The announcement was made by Sujata Sharma, Joint Secretary at the Ministry of Petroleum and Natural Gas, during an Inter-Ministerial press briefing, highlighting the impact of crude oil supply challenges.

This improvement in losses follows a strategic decision by OMCs to raise petrol and diesel prices by Rs 3, with Compressed Natural Gas prices also seeing a Rs 2 increase in major cities like Mumbai and Delhi. Last week, Union Minister of Petroleum and Natural Gas, Hardeep Singh Puri, reported the significant financial strain faced by the companies as they continued to supply fuel below production cost.

Sharma assured that refineries remain fully operational, with no fuel shortage at any retail outlets, despite occasional panic buying. The government has swiftly acted to replenish stocks and sustain normal fuel supply, while efforts to expand gas infrastructure persist. The sector has managed to deliver over 170,000 LPG cylinders in just four days, addressing the surge in consumer demand. In a bid to eliminate malpractices, surprise inspections were conducted at numerous outlets, and citizens are urged to buy fuel based on actual need to prevent any artificial scarcity.

(With inputs from agencies.)