Financial stress on state-run oil manufacturing companies has eased slightly with under-recoveries standing below Rs 600 crore per day after the fourth fuel price hike, Petroleum Secretary Sujata Sharma pointed out on Monday.
The under-recoveries stood at 1,000 crore per day before the government introduced fuel price hikes. On Monday, the central government increased fuel prices by an average of Rs 2.7 per litre. A move that is expected to help oil marketing companies cut their overall losses by at least 44%.
The four phased revisions - on May 15, 19, 23 and 25 - took Delhi petrol from Rs 94.77 to Rs 102.12 and diesel from Rs 87.67 to Rs 95.20.
Speaking amid the ongoing West Asia crisis that has disrupted crude oil and LNG imports for nearly one-and-a-half months, Sharma said India's energy imports remain "unaffected".
The comments come at a time when volatility in global energy markets and supply disruptions linked to tensions in West Asia continue to put pressure on India's energy import bill and domestic fuel retailers.
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However, she added that panic buying can be witnessed in states like Gujarat, UP, Maharashtra, which may have triggered by bulk demand, agriculture season. State governments are monitoring the supply situation and ensuring quick replenishment, as per the Minister.
Last week, Sharma had noted that fuel demand patterns are witnessing a shift, with bulk sales increasingly moving towards retail pump sales to maintain uninterrupted availability for consumers.
Under-recoveries had reduced to nearly 750 crore per day by May 18, 2026. Sharma had then clarified that the Centre was not considering any bailout package for state-run fuel retailers.
On LPG distribution, Sharma had outlined that oil companies have managed to maintain regular supplies despite global disruptions.
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