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New Delhi: Loss of Rs 1,600 to 1,700 crore every day and loss of more than Rs 1 lakh crore in just 10 weeks! This is not a trivial figure, but a heavy price that the government oil companies are paying to save the Indian common man from the brunt of the global energy crisis. But now the biggest question is that amidst these ever-deepening losses, for how long will these companies be able to keep the prices of petrol and diesel stable?

The war started in the Middle East (West Asia) about 10 weeks ago. From then till now, Indian Oil (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) have not allowed the fuel supply in the country to stop. Despite the huge shortage of oil and skyrocketing prices in many countries of the world, fuel is not only available in India, but its prices are also kept much lower than the cost.

Burden of record losses on government oil companies

According to information received from sources, all three big government oil companies of the country are currently suffering record level ‘under-recovery’ losses. The simple meaning of ‘under-recovery’ is that the oil companies are selling petrol and diesel to customers at a much lower price than what it is costing them to buy crude oil and refine it. At present, the total daily loss of these companies has reached Rs 1,600 to 1,700 crore, which has crossed the scary figure of Rs 1 lakh crore in the last two and a half months.

Crude oil is 50% expensive, but the price in India remains the same

There has been a huge jump of about 50% in the prices of crude oil in the global market. On the contrary, the prices of petrol and diesel in India have remained at the same rates for almost two years. Even today, in cities like Delhi, petrol is available at around Rs 94.77 and diesel at Rs 87.67 per litre. Although the price of LPG was increased by Rs 60 in March, experts say that the increase is also very nominal compared to the cost.

Companies may get trapped in debt trap

Oil companies buy new crude oil and run refineries with their own earnings. Experts say that now companies may have to take huge loans from the market to compensate for the ongoing losses. If crude oil prices remain high like this, then work on some big projects may stop in future. However, projects to ethanol blending, biofuel and energy security are still on priority for the government.

Price increase is now only a ‘political’ decision

A source has indicated that now increasing the prices of petrol and diesel has become a completely political decision. Considering the situation in the international market, the increase in prices is considered almost certain, but when and to what extent the government will implement it, it will become clear only in the coming time.

The world is troubled, but India gets relief

After the Middle East crisis, fuel prices have increased by 30% in many developed countries from Japan to Britain. The challenge for India is big because 40% of our crude oil, 90% of LPG and 65% of natural gas is imported from this affected area. Despite this, the government has till now given great relief to the general public.

The government emptied its treasury

To protect the public from inflation, the government has also made a big cut in its own taxes. Special excise duty on petrol has been reduced from Rs 13 to Rs 3, while the duty of Rs 10 on diesel has been completely removed. Due to this tax cut, the government is facing a loss of revenue of about Rs 14,000 crore every month.