ICRA flags Rs 530 crore daily losses for OMCs as fuel and LPG margins turn negative
Unchanged domestic fuel prices alongside higher crude costs have pushed petrol and diesel marketing margins negative, while domestic LPG losses reached an estimated Rs 300 per cylinder in September, ICRA said.
What happened
Indian oil marketing companies (OMCs) · ICRA says unchanged domestic fuel prices and higher crude costs have pushed Indian OMCs into estimated daily losses of
Key facts
- Rs 8 per litre negative petrol margin
- Rs 9 per litre negative diesel margin
- Rs 300 loss per domestic LPG cylinder in September
- Rs 530 crore estimated combined daily loss
- USD 117.4 per barrel Indian crude basket on September 21, 2026
What changed
ICRA says unchanged domestic fuel prices and higher crude costs have pushed Indian OMCs into estimated daily losses of Rs 530 crore. Petrol and diesel marketing margins are negative, while LPG under-recoveries could worsen without price revisions or government compensation.
Why this matters
Negative petrol, diesel, and LPG margins increase the risk of price revisions, making fuel-volume planning and forecourt traffic assumptions less predictable for retailers.
What to watch
- Official petrol, diesel, and domestic LPG price revisions.
- Government announcements on OMC compensation, LPG subsidy expansion, or budgetary support.
- Monthly OMC marketing-margin disclosures and reported under-recoveries.
- Brent crude movements, INR/USD depreciation, and refinery-product spreads.
- Transporter fuel-surcharge notices and changes in e-commerce or third-party logistics pricing.