New Delhi – India’s oil minister has underscored the growing financial strain on state-run fuel retailers, who are incurring significant losses by selling petrol and diesel below market-determined rates. Despite a surge in global crude prices, pump prices across the country have remained stagnant, creating a substantial financial burden for these companies.
The minister indicated that the current situation, where retailers absorb the price differential, is fiscally unsustainable in the long term. This suggests that a considerable, though inflation-conscious, adjustment in fuel prices may be imminent to alleviate the pressure on the retailers.
The prolonged period of unrevised pump prices, while intended to shield consumers from global price volatility, has led to a significant gap between the cost of procurement and the selling price. This situation impacts the operational viability of fuel retailers and raises questions about future investment in the sector if profitability remains compromised.
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