India's State-Run Oil Companies Reel Under ₹530-Crore Daily Fuel Losses

India's state-owned oil marketing companies are struggling to cope with heavy losses due to surging crude oil prices. According to rating agency ICRA, Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation are estimated to be losing ₹8 per litre on petrol and ₹9 per litre on diesel.

The combined daily loss for these companies is approximately ₹530 crore, which could increase further if crude prices continue to rise. The Indian crude oil basket has climbed to $117.4 per barrel, a significant jump from the average of nearly $66 during FY26.

Despite the pressure on fuel-marketing margins, refining economics remain relatively supportive due to refinery outages, lower inventories, and supply constraints. However, ICRA warns that elevated crude and petroleum-product prices could weaken the profitability and cash flows of state-run oil companies.