India’s top three OMCs report combined ₹18,150-crore loss in Q1FY27 amid West Asia conflict
According to the government, the losses were the result of the government’s decision not to pass on the increased international crude prices to consumers
India’s top three oil marketing companies (OMCs) have collectively incurred losses of ₹18,150 crore during the first quarter of FY26-27 amid rising global crude oil prices due to the war in West Asia and the closure of the Strait of Hormuz, the Ministry of Petroleum and Natural Gas informed the Rajya Sabha on Monday.
The Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) reported losses of ₹2,662 crore, ₹3,962 crore and ₹11,526 crore, respectively. As per the numbers shared by the ministry, HPCL faced the highest losses.
In reply to a question, Minister of State Suresh Gopi said that the losses were the result of the government’s decision not to pass on the increased international crude prices to consumers.
“Prior to the West Asia crisis, crude oil prices (Indian basket) were USD 69/barrel (February 2026) and increased to USD 136.68/barrel during March 2026 and have continued to fluctuate due to various geopolitical and market factors. Despite incurring significant under-recoveries on the sale of petrol and diesel, their prices were increased only marginally by the PSU OMCs. As a result of not passing on the increase in international prices to consumers, all three PSU OMCs have reported losses during the first quarter (Q1) of FY 2026–27,” the reply mentioned.
When asked whether the government proposes to reduce retail petrol and diesel prices in view of the sustained decline in international crude oil prices, the Petroleum Ministry said the earlier hike in prices due to West Asia was much lower than in other global economies and did hint at any retail price reduction in the coming days.
“Despite unprecedented volatility in international crude oil and product prices due to conflicts and other extraneous factors/developments, the increase in prices of petrol and diesel at retail outlets in India between June 2021 and June 2026 has been much lower than in major developed and neighbouring countries,” the ministry said.
“Further, to protect consumers from its impact, in March 2026, the Government reduced the excise duty on petrol and diesel by Rs. 10 per litre each, but at the same time resulting in a substantial reduction in its tax revenues,” it added.