Indian Oil Companies Incur Losses

Indian Oil Corporation Ltd, Petroleum Corporation Ltd, and Hindustan Petroleum Corporation Ltd, India's state-run oil marketing companies, have collectively incurred an estimated ₹30,000 crore in losses since mid-March. This is due to their decision to maintain stable retail fuel and LPG prices despite a more than 50% surge in input costs, driven by escalating West Asia tensions and disruptions in the Strait of Hormuz. The conflict, initiated by strikes from the United States and Israel on Iran, led to Iran's retaliation and closure of the Strait, causing Brent Crude prices to jump from $72 to $144 per barrel. The Indian government intervened by cutting excise duties on petrol and diesel, preventing losses from reaching ₹62,500 crore. This policy prioritizes consumer stability and economic continuity, contrasting with other nations like Spain, Japan, Italy, Israel, Germany, and the United Kingdom, which saw significant fuel price increases.