Government Rules Out Bailout For Oil Firms
The government has ruled out financial support for state-run oil marketing companies despite rising losses on petrol, diesel and aviation turbine fuel. The pressure has increased after retail fuel prices remained unchanged even as crude oil costs rose sharply due to the West Asia conflict.
Govt Rules Out Oil Firm Bailout
The Centre has said there is no current proposal to compensate oil marketing companies for fuel under-recoveries. Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd are selling key fuels below cost, but the government has decided against a direct bailout for now.
Petrol And Diesel Prices Remain Unchanged
Petrol and diesel prices have not been increased despite losses on retail sales. Officials said consumer interest has been kept in mind while deciding fuel pricing, especially at a time when higher energy costs can add to inflationary pressure across transport, food and essential goods.
ATF Losses Add Pressure On Oil Companies
Oil firms have also started booking losses on aviation turbine fuel for the first time in more than two decades. ATF prices for domestic airlines were raised earlier, but the increase covered only part of the rise needed to match higher global fuel costs.
LPG And Commercial Fuel Prices Revised
Domestic LPG prices were raised by Rs 60 per 14.2 kg cylinder in March, but the hike did not fully cover rising costs. Commercial LPG and bulk diesel prices have also been revised, while regular petrol, diesel and domestic LPG prices remain protected from sharp increases.
