Oil marketing companies in India are incurring substantial losses on petrol and diesel sales. Recent price increases have not been enough to cover costs, with experts forecasting further hikes.
Oil marketing companies continue to lose money on every litre of petrol and diesel sold. This persists even after recent price adjustments in the market. The situation points to ongoing under-recoveries for these firms.
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Crude oil prices surpassing $100 have erased Rs 20 lakh crore from Indian equity markets this week, amid escalating Iran conflict. The rupee hit a record low as foreign institutional investors continued selling, intensifying the downturn. Experts suggest the panic could present long-term buying opportunities.
Congress president Mallikarjun Kharge and other opposition parties have criticised recent fuel price increases, accusing the Narendra Modi government of failing to shield citizens from rising costs.
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Dalal Street saw a notable decline with the Indian rupee hitting a record low for the second consecutive day. Key equity indices posted their largest single-day drop in six weeks.
Petrol prices in South Africa will increase by 14% and diesel by nearly 24% from Wednesday, 6 May, due to the ongoing Iran war. The Department of Mineral Resources and Petroleum (DMPR) announced the hikes amid rising global Brent crude prices. Temporary fuel levy reductions offer some relief.
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In response to diesel shortages triggered by Middle East conflicts including recent attacks on Iran, South Africa's Department of Mineral Resources and Petroleum has begun a comprehensive review of the fuel pricing mechanism. Reforms to industry margins are targeted for March 2027, with a temporary R3 per litre fuel levy cut providing short-term relief amid rising global oil prices.
Despite the fuel tax discount, prices in Germany have risen again after an initial drop. ADAC and the Federal Cartel Office criticize that the 17-cent-per-liter tax cut is not fully passed on to consumers. Oil companies and associations dispute this.
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Building on earlier concerns over GDP growth projections, the escalating West Asia war is pressuring Indian equity markets and disrupting footwear and textile sectors through supply shortages and cost spikes. Prashant Jain of 3P Investment Managers views the impact as marginal and transient, while industry reports show input costs up 10-50%.