Fuel retailers lost Rs 74,781 Crore selling petrol, diesel below cost: Puri

Oil marketing companies incurred losses of Rs 74,781 crore by selling petrol, diesel and LPG below cost until June 30, Petroleum Minister Hardeep Singh Puri said. He indicated fuel price cuts could be considered if global crude oil prices remain low

New Delhi: Oil marketing companies suffered Rs 74,781-crore losses for selling petrol, diesel and LPG below cost for the period up to June 30 when global crude oil prices spiked in the wake of the West Asia conflict, Union Petroleum Minister Hardeep Singh Puri said on Thursday.

International crude oil prices have come down but companies are still processing crude they bought at the height of the West Asia crisis, Puri told reporters.

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Oil companies typically buy crude oil — the raw material for producing fuel — at least two months in advance. So, crude oil that is being processed now is essentially what was bought in April or early May when international prices were very high.

On whether there would be a cut in prices of petrol and diesel, Puri said this would be a legitimate question if oil prices stayed low for the next few weeks.

Crude oil prices started coming down only in the second half of June after the US and Iran reached an agreement to end the conflict.