Indian fuel retailers have excess cooking gas supplies due to over-booking cargoes amid Persian Gulf disruptions and increased domestic production. Slow demand recovery from large consumers has led to storage issues and penalties.
BPCL Director Raj Kumar Dubey warned of unavoidable petrol and diesel price hikes due to ongoing global energy disruptions and rising crude oil prices. India is diversifying oil sources, including Russian crude, to avoid shortages and accelerate its transition to green energy.
India's state-run fuel retailers increased petrol and diesel prices by approximately 90 paise per litre on Tuesday, the second hike in less than a week. This follows a four-year freeze, attributed to the US-Iran conflict impacting global oil prices. The increases coincide with a severe heatwave across northern and central India.
Indian consumers are shielded from soaring global crude prices, but state fuel retailers are facing immense financial strain. Companies are losing approximately Rs 1,000 crore daily, with cumulative under-recoveries reaching nearly Rs 1.98 lakh crore. This price freeze, while ensuring supply, puts significant pressure on their balance sheets and future operations.
State-run fuel retailers will not receive government financial backing for losses incurred from selling petrol, diesel, and aviation turbine fuel below cost. Despite rising crude oil prices, the government has opted to shield consumers by not revising retail prices for these fuels, focusing instead on price adjustments for bulk diesel and commercial LPG.
The Competition and Markets Authority has found no evidence of widespread price-gouging by UK fuel retailers since the US-Israel war with Iran began. Profit margins remained broadly unchanged between February and March, though the CMA is investigating five retailers (two supermarkets and three non-supermarkets) for margin increases. Chief executive Sarah Cardell said the watchdog is investigating why these specific retailers saw increased margins and will report in May.
