Languished in Q1
tate-owned fuel retailer and refiners Bharat Petroleum, Indian Oil and Hindustan Petroleum have all reported huge losses in the June 2022 quarter, totalling a massive Rs 18,480 crore in size, aided by eroding marketing margins on fuels petrol, diesel and domestic LPG.
Oil marketing companies revise the prices of petrol and diesel every day, in line with the global oil prices. However, the three public sector oil companies have not undertaken any rate hikes or change in fuel rates in the past four months despite international crude oil prices shooting to multi-year record highs in the period.
The prices of domestic LPG have also been held and not revised in tandem with the rising costs. The combined loss of Rs 18,480.27 crore is the highest recorded in any quarter.
The basket of imported crude oil in India during the Apr-Jun quarter averaged $109/barrel, compared to the retail pump rates in the country aligned to about $85-86/barrel, stated a PTI report.
In May 2022, the Centre cut excise duty on petrol and diesel. The ongoing freeze on petrol and diesel prices by the state-owned oil retailers has now touched the 124-day mark.