OMCs Losses Down To Rs 750 Cr Per Day, No Bailout Package Under Consideration: MoPNG

OMCs Losses: Ahead of the second fuel price hike in India, a senior Ministry of Petroleum and Natural Gas (MoPNG) told Republic Media network, that OMC losses spiralled down to Rs 750 crore per day.

Sujata Sharma, Joint Secretary at MoPNG, noted that the losses of oil marketing companies (OMCs) inclusive of petrol, diesel, and LPG came down to Rs 750 crore per day from Rs 1,000 crore per day.

She also noted that there was still no bailout package for OMCs under consideration.

On developments linked to the US waiver on Russian Oil, the Petroleum Ministry was clear that India was purchasing Russian oil before the waiver and will continue doing so.

Also Read: Fuel Price Hike To Gift Nifty: 5 Key Triggers For Sensex, Nifty 50 Today 

"We have been purchasing from Russia before waiver, during waiver, and even now. So, it's the commercial sense that should prevail for oil marketing companies," Sharma noted.

Coming to the impact on freight costs amid rising crude oil prices, Mukesh Mangal, Additional Secretary at Shipping Ministry, noted that LPG freight rate pre US-Iran war stood at $94 per metric tonne and now it was $207 metric tonne as on May 15.

Crude oil freight charges have increased from $14 per tonne to $28.6 per tonne, the Shipping Ministry official noted.

For containers, freight charges have rallied to $2,000 per container from $203 per container before the West Asia conflict. 

On the other hand, a second fuel price hike took place on May 19, signalling a price hike by 90 paise in petrol and diesel rates after the Rs 3 fuel price hike. 

Petrol price was hiked to Rs 98.64 a litre from Rs 97.77 per litre in the national capital. Diesel now costs Rs 91.58 a litre against Rs 90.67 previously.