New Delhi: Oil Marketing Companies (OMCs) incurred losses of Rs 74,781 crore on the sale of petrol, diesel and LPG below cost in the period up to June 30, as international crude oil prices surged following the West Asia conflict, Petroleum Minister Hardeep Singh Puri said on Thursday.
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Puri said that while global crude prices had since eased, companies were still working through crude purchased at the peak of the West Asia crisis. Oil companies usually procure crude, the feedstock for fuel production, at least two months ahead of use. As a result, the crude being refined at present largely reflects cargoes bought in April or early May, when international prices were elevated.
Asked whether petrol and diesel prices would be reduced, Puri indicated that the matter would warrant consideration only if crude prices remained subdued over the coming weeks. "This would be a legitimate question if oil prices stayed low for the next few weeks," he told reporters.
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Crude oil prices began falling only in the latter half of June, after the United States and Iran reached an agreement to bring the conflict to a close.
