West Asia Crisis Causes Rs 30,000 Crore Loss to Indian Oil Companies Despite Stable Fuel Prices
Indian oil companies reportedly suffered Rs 30,000 crore losses due to rising global crude oil prices amid the West Asia conflict, while petrol and diesel prices remained stable.
State-owned oil companies in India have reportedly suffered losses of around Rs 30,000 crore due to rising global crude oil prices triggered by conflicts in West Asia. Despite international crude oil prices crossing $100 per barrel and touching $144 at one stage, petrol and diesel prices in India have remained stable, according to official sources.
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Officials said oil companies continued uninterrupted fuel supply during the crisis even as demand surged during the Hormuz blockade.
Crude Oil Prices Rise Sharply Due to West Asia Conflict
According to reports, before the Iran war began on February 28, the price of one barrel of crude oil was around $70.
Following tensions and conflict in West Asia, crude oil prices increased sharply and are currently trading above $100 per barrel.
At one point, international crude oil prices reportedly touched $144 per barrel.
Officials stated that raw material prices had increased by nearly 50 percent during the peak of the crisis.
Indian Oil Companies Suffer Rs 30,000 Crore Loss
The report stated that three major state-owned oil companies:
- Indian Oil Corporation (IOC)
- Bharat Petroleum Corporation Limited (BPCL)
- Hindustan Petroleum Corporation Limited (HPCL)
continued fuel supply without interruption despite the sharp rise in international crude oil prices.
Officials said these companies have collectively suffered losses of nearly Rs 30,000 crore since mid-March.
Sources added that losses could have increased to Rs 62,500 crore if the Central government had not reduced excise duty on petrol and diesel by Rs 10 per litre.
Hormuz Blockade Increased Fuel Demand and Supply Pressure
During the Hormuz blockade, panic buying reportedly increased as people rushed to purchase fuel fearing shortages.
This sudden increase in demand created additional pressure on fuel supply chains.
Officials also pointed to extra expenses caused by:
- Diversion of transit vessels
- Increase in insurance premiums
- Rising transportation costs
These factors further increased the financial burden on oil companies.
India Maintains Stable Petrol and Diesel Prices
Despite the global oil shock, India did not significantly increase petrol and diesel prices unlike several other countries.
Sources said the government decided not to burden consumers during the crisis and focused on maintaining stability in fuel pricing.
However, officials expressed concern that continued losses may force oil companies to depend heavily on capital loans in the future.
Centre Rejects Rumours of Fuel Price Hike
Meanwhile, rumours had circulated earlier claiming petrol and diesel prices would be increased after Assembly elections.
Some reports even suggested a possible hike of Rs 25 to Rs 28 per litre.
However, the Central government rejected those reports and denied any such decision.
India’s state-owned oil companies have reportedly suffered losses of around Rs 30,000 crore due to the sharp rise in global crude oil prices caused by the West Asia conflict. While crude oil prices crossed $100 per barrel and touched $144 at one stage, petrol and diesel prices in India remained stable. Indian Oil Corporation, BPCL, and HPCL continued uninterrupted fuel supply during the Hormuz blockade despite increased demand and supply chain pressure, while the Centre rejected rumours of a major fuel price hike.
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