Indian Oil Companies Lose 530 Crore Daily Amid Crude Spike

State-owned oil marketing companies in India are incurring combined daily losses of approximately 530 crore rupees. According to ICRA Limited, the financial strain is driven by a surge in global crude oil prices coupled with stagnant domestic retail fuel rates.

Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation are currently losing 8 rupees per litre on petrol and 9 rupees per litre on diesel. Domestic LPG under-recoveries reached roughly 300 rupees per cylinder in September 2026. The Indian crude oil basket rose to 117.4 dollars per barrel on September 21, fueled by geopolitical tensions in West Asia, including a renewed US-Iran conflict, Houthi activity in the Red Sea, and the shutdown of the East-West pipeline in Saudi Arabia.

While Singapore gross refining margins remain supportive, ICRA warns that these losses will weaken profitability and cash flows. This trend is expected to increase short-term borrowing requirements for working capital throughout the 2026-27 financial year.