India's Oil Marketing Companies face nearly Rs 700 under-recovery per domestic LPG cylinder. The Ministry of Petroleum and Natural Gas reports stable supplies despite global disruptions, with domestic production and imports bolstering availability. Digital systems streamline bookings and deliveries.
Fuel prices in India have increased by Rs 7.5 per litre since the Middle East crisis began, with petrol and diesel seeing a Rs 2.61 and Rs 2.71 hike respectively. This marks the fourth increase in ten days, raising concerns over household budgets, inflation, and transportation costs.
India assures stable fuel supplies despite global disruptions and rising crude prices. However, unchanged domestic rates are causing significant losses for oil marketing companies, leading to a pressing question about potential price hikes. The government faces a fiscal burden from absorbing price shocks through tax cuts.
Air India is cutting nearly 100 domestic and international flights through July as soaring jet fuel prices and airspace closures due to the Gulf conflict render many routes unprofitable.
ATF or jet fuel, for international carriers became costlier on Friday, with prices rising by 5 per cent. This marks the second consecutive monthly increase as oil marketing companies continue to gradually pass on the impact of higher global energy prices.
Indian oil marketing companies are incurring significant losses on petrol and diesel sales due to capped retail prices and high crude costs. Elevated energy prices are also inflating fertiliser subsidies and pressuring margins across the chemical and city gas sectors.
Indian oil marketing companies face significant financial strain as LPG under-recoveries are projected to hit Rs 80,000 crore in FY2027. Rising global energy prices and supply disruptions from the West Asia conflict are impacting profitability across downstream sectors.
India is securing LPG cargo through spot purchases from the US and other nations to meet cooking gas demand amid tight supplies from the West Asia conflict. State-run oil marketing companies have tied up with the US while diversifying import sources from 10 to 15 countries. Domestic output has risen nearly 20% to about 46,000 tonnes against a daily requirement of 80,000 tonnes, reducing import dependency from 60%. At least 8 lakh tonnes of assured import cargo is already en route.
