Key facts
- Oil Marketing Companies are facing substantial losses on petrol and diesel.
- Recent price increases have not eliminated losses on each litre sold.
- Experts predict further price hikes are likely.
- The situation suggests continued under-recoveries for OMCs.
Oil Marketing Companies (OMCs) are experiencing significant financial strain due to the current pricing environment for petrol and diesel. Despite efforts to pass on some costs through price increases, the companies continue to lose money on each litre sold, indicating ongoing under-recoveries. This situation raises concerns about their profitability and financial stability.