Petrol, Diesel, and LPG Prices for May 28: Latest City-wise Rate Hikes Announced

Fuel Prices Remain Stable, but Under-Recoveries Mount for State-Run Oil Marketing Companies

Despite no fresh hike in petrol and diesel prices on May 28, concerns are mounting over another possible revision as state-run oil marketing companies (OMCs) continue to face heavy under-recoveries despite four rounds of fuel price increases this month. Petrol and diesel prices have been raised four times in May, with cumulative increases of around Rs 7.5 per litre, but a latest report suggests retail fuel rates in Delhi still remain nearly Rs 13 per litre below estimated break-even levels for OMCs.

The pressure on fuel retailers comes amid elevated global crude oil prices and geopolitical tensions in West Asia, raising fears that consumers may have to brace for further hikes in the coming days. The Centre on Monday said losses incurred by state-run OMCs are still running at slightly below Rs 600 crore a day despite the recent hikes.

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The Centre's Joint Secretary at the Ministry of Petroleum and Natural Gas, Sujata Sharma, had earlier stated that the under-recoveries include losses on petrol, diesel and liquefied petroleum gas (LPG). She also noted that the current losses are severe enough to wipe out the substantial profits earned by OMCs in the previous financial year when global crude prices were lower and retail fuel prices remained elevated.

According to Sharma, "Last year's OMC profits will be wiped out within a quarter at the present rate of losses." The OMCs' substantial under-recoveries have raised concerns over the sustainability of their operations, particularly in the current market scenario.