State-run oil marketing companies in India have incurred losses exceeding 1 lakh crore Indian rupees over the past ten weeks as they kept petrol and diesel prices unchanged despite a surge in global crude oil prices triggered by the Middle East conflict. The three major public sector fuel retailers are facing daily under-recoveries of about 1,600 to 1,700 crore Indian rupees, as retail prices remain at nearly two-year-old levels.

The losses are driven by the gap between the actual cost of fuel and the regulated selling price. Although domestic cooking gas prices were raised in March, they remain below cost levels. The conflict has disrupted a significant share of India’s crude oil, cooking gas, and natural gas imports, yet companies have maintained uninterrupted supplies.

Sources indicated that a fuel price hike has become inevitable, but the timing and extent of any increase will be decided by the government. Continued high crude prices could force the companies to increase borrowing and adjust capital expenditure plans, even as strategic investments in refining capacity, biofuels, ethanol blending, and energy security infrastructure are expected to continue with government support.