The central government has announced to provide financial support of about Rs 1.23 lakh crore to oil marketing companies to cushion losses triggered by the West Asia conflict and shield consumers from a sharper rise in fuel prices. However, no proposal has been made to curb capital outflow, PTI reported, quoting sources.
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The support covers the initial 78 days of the conflict and includes the impact of excise duty reductions, the agency said.
As the war rages on, with no respite in sight, the fertiliser minister has also sought to double budgeted subsidy to Rs 1.77 lakh cr for FY27, sources told PTI.
Fuel price hikes help narrow OMC losses
The announcement comes on the back of Minister of Petroleum and Natural Gas Hardeep Singh Puri stating that Oil marketing companies are incurring losses of around ₹652 crore per day despite recent fuel price hikes.
To help the bleeding OMCs, the government also announced a phased fuel price increase and raised prices by Rs 7.5-8 in the last month.
Earlier under-recoveriesRs 1,000 crore/dayCurrent under-recoveriesBelow Rs 600 crore/dayPetrol price in DelhiRs 94.77 to Rs 102.12/litreDiesel price in DelhiRs 87.67 to Rs 95.20/litreGovt support to OMCsRs 1.23 lakh crore
Fertiliser market faces growing pressure
Government sources to PTI indicated that the fertiliser sector could face mounting challenges as global supply conditions tighten.
Officials said the fertiliser pool is shrinking while prices continue to rise. They cautioned that fertiliser prices may remain elevated in the near term as international markets adjust to ongoing disruptions.
Meanwhile, LPG distribution has remained stable. Oil companies have continued regular supplies despite volatility in global energy markets.
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The government’s support package and fuel price adjustments have helped ease pressure on state-run fuel retailers, even as the West Asia conflict continues to affect global commodity markets.
TOPICSoilThis article was first uploaded on June nine, twenty twenty-six, at twenty-one minutes past six in the evening. © IE Online Media Services (P) Ltd