State-owned oil marketing firms in India are facing massive losses following an increase in crude oil prices due to the West Asia crisis.

As per a report by rating agency ICRA, Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum have incurred losses of ₹8 per liter for petrol and ₹9 per liter for diesel. The under-recovery for domestic LPG cylinders amounts to ₹300. Losses for these firms are projected to be about ₹530 crore per day.

ICRA has said that the basket price of crude oil imported by India stood at $117.4 per barrel on September 21, 2026, whereas the average import price in 2025-26 was $66 per barrel. Post the beginning of the West Asia crisis, the retail price increase from state-owned oil companies occurred only in May 2026.

In May 19-23, 2026, the retail price of petrol was raised four times (₹7.35 per liter). However, since then, crude oil prices in the international market have been highly volatile, with prices staying near $100 per barrel in recent weeks.

According to the report, these companies' refining margins have remained quite good. Singapore gross refining margins (the benchmark for calculating the profit margins of oil refineries in Asia) have remained above $10 per barrel since the start of the West Asian crisis.

However, high crude prices and continued low-cost sales of products are likely to impact the companies' profitability and cash flow. Their financial performance will also depend on the amount of financial assistance the central government provides.

State-owned oil marketing firms in India are facing massive losses following an increase in crude oil prices due to the West Asia crisis.

As per a report by rating agency ICRA, Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum have incurred losses of ₹8 per liter for petrol and ₹9 per liter for diesel. The under-recovery for domestic LPG cylinders amounts to ₹300. Losses for these firms are projected to be about ₹530 crore per day.

ICRA has said that the basket price of crude oil imported by India stood at $117.4 per barrel on September 21, 2026, whereas the average import price in 2025-26 was $66 per barrel. Post the beginning of the West Asia crisis, the retail price increase from state-owned oil companies occurred only in May 2026.

In May 19-23, 2026, the retail price of petrol was raised four times (₹7.35 per liter). However, since then, crude oil prices in the international market have been highly volatile, with prices staying near $100 per barrel in recent weeks.

According to the report, these companies' refining margins have remained quite good. Singapore gross refining margins (the benchmark for calculating the profit margins of oil refineries in Asia) have remained above $10 per barrel since the start of the West Asian crisis.

However, high crude prices and continued low-cost sales of products are likely to impact the companies' profitability and cash flow. Their financial performance will also depend on the amount of financial assistance the central government provides.