State-run oil marketing companies report loss of ₹18,622-cr in 9 months of FY23

The three state-run oil marketing companies (OMCs) – Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) – have cumulatively posted a loss of ₹18,622 crore during April-December of FY23, Parliament was informed on Monday 20 March.

“The three public sector OMCs viz. IOCL, BPCL and HPCL have booked a combined loss of ₹18,622 crore during April 2022 to December 2022,” Minister of State (MoS) for Petroleum & natural Gas Rameswar Teli said in a written response to a query in the Rajya Sabha.

The OMCs have been booking losses on sale of petrol and diesel due to unprecedented volatility in international crude oil prices following the Russia-Ukraine war in February 2022 and the freeze on the retail prices of both the auto fuels since April 6, 2022.

“While crude oil price (Indian basket) in rupee per barrel terms has increased by 23 per cent from December 2021 to March 2023, the increase in retail selling price of petrol and diesel at Delhi has only been 1.08 per cent and 3.40 per cent, respectively during this period,” the Minister pointed out.

Responding to a starred question in the Rajya Sabha, Oil Minister HS Puri said that due to high volatility and elevated prices of crude oil, most of the developed countries have been reeling under high petrol and diesel prices.

“As per data compiled by Petroleum Planning and Analysis Cell (PPAC), in developed countries like US, the prices of petrol and diesel increased by about 10.8 per cent and 35.2 per cent, respectively over the period January 2022 to January 2023, whereas during this period, prices in India (Delhi) increased only by 1.37 per cent and 3.40 per cent for petrol and diesel respectively,” Puri added.

Similarly, during the same period significant increase in the prices of petrol and diesel has been seen in the neighbouring countries such as Pakistan (28 per cent in petrol and 40 per cent in diesel), Bangladesh (32 per cent in petrol and 24 per cent in diesel), Sri Lanka (29 per cent in petrol and 106 per cent in diesel) and in Nepal (31 per cent in petrol and 48 per cent in diesel), the Minister said.