Petroleum Minister hints at fuel price hike amid OMCs' mounting losses due to West Asia crisis
Union Petroleum Minister Hardeep Singh Puri indicated a potential fuel price hike, citing mounting losses for oil-marketing companies (OMCs) due to the prolonged West Asia crisis. OMCs are currently bleeding losses by holding petrol, diesel, and LPG prices firm, with under-recoveries projected to reach up to ₹2 lakh crore this quarter. Puri emphasized that one quarter of losses could wipe out net profits from the previous financial year. He reassured consumers about adequate retail fuel supply but urged diligent use of fuel, echoing PM Modi's call for austerity.
Key Points
- Union Petroleum Minister Hardeep Singh Puri suggested a potential fuel price hike due to OMCs' mounting losses.
- OMCs are incurring significant under-recoveries by keeping petrol, diesel, and LPG prices firm amidst the West Asia crisis.
- Under-recoveries for OMCs are estimated to reach up to ₹2 lakh crore this quarter.
- The Minister highlighted that one quarter of losses could erase the previous year's net profits.
- Consumers are urged to use retail fuel diligently, aligning with the Prime Minister's call for austerity.
Exam Facts
- Union Petroleum Minister: Hardeep Singh Puri.
- Estimated under-recoveries for OMCs this quarter: up to ₹2 lakh crore.
- India's crude oil reserves: 60 days.
- India's LPG production: increased from 35,000-36,000 tonnes to 54,000 tonnes daily.
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