India's OMCs Suffer Heavy Losses as Crude Prices Soar Above $100 Per Barrel

India's oil marketing companies (OMCs) are facing significant losses due to rising crude oil prices. The benchmark Brent crude price has crossed $100 per barrel, causing the domestic fuel prices to remain frozen despite soaring international crude prices.

According to Icra's senior vice president and group head Prashant Vasisht, 'With the escalation in hostilities between Iran and the US, Brent prices have crossed the $100 per barrel mark today and the Indian crude basket is at approximately $109 per barrel.'

The government raised petrol prices by Rs 7.35 per litre and diesel rates by Rs 7.53/l in May, but these increases are insufficient to cover the losses incurred by OMCs.

As a result, marketing margins on petrol are negative Rs 5 per litre and diesel at negative Rs 23 per litre. Under recoveries on domestic LPG (liquified petroleum gas) are at Rs 200 per cylinder.