OMCs face estimated ₹530 crore daily losses as fuel prices lag crude spike
ICRA estimates petrol and diesel marketing margins have turned negative by ₹8-9 per litre, while LPG under-recoveries are about ₹300 per cylinder. The pressure is set to weigh on OMC profitability, cash flows and working capital in FY2026-27.
What happened
Indian oil marketing companies (OMCs) · ICRA estimates Indian OMCs are losing Rs 530 crore daily as unchanged domestic fuel prices lag a crude-price spike.
Key facts
- Rs 530 crore estimated daily losses
- Negative marketing margins of Rs 8/litre on petrol and Rs 9/litre on diesel
- Around Rs 300 under-recovery per LPG cylinder in September 2026
- Indian crude basket at $117.4/barrel on September 21
- Cumulative negative LPG buffer of Rs 61,940 crore as of June 30, 2026
What changed
ICRA estimates Indian OMCs are losing Rs 530 crore daily as unchanged domestic fuel prices lag a crude-price spike. Petrol, diesel and LPG under-recoveries are pressuring profitability, working capital and FY2026-27 earnings.
Why this matters
Estimated ₹530 crore in daily losses signals material downside risk to OMC FY2026-27 earnings, cash flows and balance-sheet metrics if retail prices remain disconnected from crude costs.
What to watch
- Daily petrol and diesel marketing margin estimates relative to the reported negative ₹8-9 per litre range
- Brent crude trajectory, INR/USD movement and product crack spreads
- Any OMC announcement on pump-price revisions, LPG pricing, borrowing, capex deferrals or working-capital stress
- Government signals on excise-duty changes, LPG subsidy/compensation or direct fiscal support
- Freight-rate increases and delivery-fee changes by e-commerce, quick-commerce, logistics and consumer-goods companies