Fuel price freeze: Rs 18/litre loss on petrol, Rs 35 on diesel

NEW DELHI: (Apr 14) Losses on petrol have widened to Rs 18 per litre and to Rs 35 on diesel as state-owned fuel retailers continue to keep pump prices frozen despite a sharp rise in input costs, sources said.

Despite prices being deregulated more than a decade back, state-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) have not changed the retail petrol and diesel price since April 2022. Global crude oil prices have seen sharp fluctuations over this period – from above USD 100 per barrel following the Russia-Ukraine war, to easing to around USD 70 a barrel earlier this year, before surging again to about USD 120 last month after the US-Israel attacks on Iran triggered fresh supply concerns.

The three firms were incurring losses of about Rs 2,400 crore per day at the peak last month, which have since narrowed to around Rs 1,600 crore daily after the government cut excise duty on petrol and diesel by Rs 10 per litre each – a reduction that was not passed on to consumers but used to partly offset losses, industry sources said.