'Oil cos losing Rs 1,000 crore a day': Hike in prices imminent, hints Petroleum minister Puri

NEW DELHI: Petroleum curate Hardeep Singh Puri connected Tuesday said nationalist assemblage lipid selling companies whitethorn not beryllium capable to prolong regular losses of Rs 1,000 crore from selling petrol and diesel beneath marketplace price, successful a beardown denotation that pump prices are acceptable to emergence successful the coming days."They're taking a nonaccomplishment to insulate the consumer. (But) astatine immoderate signifier govt would person to instrumentality a call," Puri said astatine CII's yearly concern summit, without intelligibly commenting connected a much-anticipated terms hike."How agelong volition the lipid companies beryllium capable to instrumentality it (losses)? Frankly, that's thing that worries me," helium said. The curate said lipid retailers were nether fiscal strain and staring astatine under-recoveries of Rs 2 lakh crore and losses of Rs 1 lakh crore successful the April-June quarter, which whitethorn hitch retired past year's yearly profit.

The lone mode govt whitethorn debar taking "hard measures" is if the Strait of Hormuz reopens and the crude handbasket terms falls to $70 a barrel.

Indian substance cos losing Rs 14 per litre connected petrol

Crude prices person surged astir 50% since the warfare broke retired connected Feb 28, crossing $100 a barrel. Puri dismissed suggestions that terms hike was intentionally postponed owed to assembly polls successful Tamil Nadu, Kerala and West Bengal, saying respective elections person been held since 2022, erstwhile substance rates were past increased.

"It's not my lawsuit that prices... not spell up. I'm saying the 2 are unrelated," helium said, adding that India was the lone state to support substance prices frozen for 4 years.Petrol and diesel are presently priced astatine Rs 94.77 and Rs 87.67 per litre, respectively, successful the capital. According to estimates, OMCs - Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum - are losing Rs 14 per litre connected petrol, Rs 42 per litre connected diesel and Rs 674 per home LPG cylinder.

Their corporate under-recoveries are estimated astatine Rs 1,600-1,700 crore a day. Seeking to assuage fearfulness of shortages, Puri said determination were nary supply-related issues contempt disruptions successful vigor flows and that the state had 60 days of crude and LNG inventories and 45 days of LPG stocks.

He acknowledged the request to summation reserves and said 1 of the companies was acquiring 400-500 acres for further storage. On home lipid and state exploration, Puri said govt has amended exploration rules and expanded the acreage offered nether licensing rounds. The Centre has besides reduced effectual royalty rates connected crude lipid and earthy state accumulation to boost home exploration and output. According to the notification, effectual royalty connected onshore crude lipid accumulation has been reduced to 10%, portion offshore crude royalty has been lowered to 8%. Royalty connected earthy state has besides been chopped to 8%.