Oil firms facing Rs 30,000-crore monthly losses, but no hike in fuel prices: Govt

The government on Friday said amid rising global energy prices, oil marketing companies were facing massive under-recoveries of around Rs 30,000 crore every month on the sale of petrol, diesel and LPG. The consumer prices of domestic LPG and piped natural gas (PNG) have remained unchanged, despite sharp volatility in the global energy markets and rising import costs driven by developments in West Asia.

Addressing the inter-ministerial briefing on recent developments in West Asia, an official from the Ministry of Petroleum and Natural Gas said, “India remains heavily dependent on West Asia for energy imports, with nearly 90 per cent of the imported LPG and around 65 per cent of natural gas imports sourced from the region. Owing to the ongoing developments in West Asia, both domestic and international markets have witnessed significant price fluctuations along with concerns over supply disruptions.”

The official stated that international crude oil prices, which were around $70 per barrel nearly two months ago, have surged to almost $120 per barrel. Similarly, LPG prices based on the Saudi CP benchmark have touched nearly $780 per tonne.