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Govt will have to take a view at some stage on how long OMCs can suffer losses: Oil minister
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Govt will have to take a view at some stage on how long OMCs can suffer losses: Oil minister

The Indian Express·Sukalp Sharma·21 days ago
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The government will have to take a view at some point on how long public sector oil marketing companies (OMCs) can continue to suffer losses by selling major fuels below market price, Petroleum Minister Hardeep Singh Puri said Tuesday, but did not comment on whether a fuel price hike is on the cards. While he assured that there are adequate stocks of petrol, diesel, and cooking gas for households in the country for regular supplies, Puri said that the global energy crisis due to the West Asia war and the consequent closure of the Strait of Hormuz is leading to significant financial strain for the OMCs, with combined losses of the three refiners-cum-fuel retailers projected at Rs 1 lakh crore in the April-June quarter at the current price levels. “How long will the oil companies be able to take it? Frankly, that’s something that worries me. There have been times when the oil companies have done exceptionally well, (like) till recently.…

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