The Centre is considering a financial relief package for state-run oil marketing companies (OMCs) after they incurred nearly Rs 75,000 crore in losses on the sale of petrol, diesel and LPG during the April-June quarter, according to a report. The proposed package aims to compensate public-sector OMCs for losses incurred after they absorbed higher fuel costs without fully passing the impact on to consumers.
Earlier this month, Petroleum and Natural Gas Minister Hardeep Singh Puri said the three state-run OMCs had together incurred losses of Rs 74,781 crore during the April-June quarter. The losses were primarily attributed to selling petrol, diesel and domestic LPG below cost amid elevated global crude oil prices and geopolitical disruptions.
Government Yet To Take Final Decision
According to the report, discussions on the relief package are at a preliminary stage and are currently being examined by the Ministry of Petroleum and Natural Gas. No final decision has been taken. The proposal will have to secure the finance ministry's approval before it is placed before the Cabinet for consideration.
If approved, the package would provide financial support to state-owned fuel retailers, helping offset losses incurred during the quarter. The three state-run OMCs, Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd. (BPCL) and Hindustan Petroleum Corporation Ltd. (HPCL), play a key role in India's fuel distribution network.