OIL RALLY LEAVES OMCs REELING

Retailers may lose ₹15,000 cr a month without price hikes or govt support

- RAGHAVENDRA KAMATH & SAURAV ANAND

STATE-RUN OIL marketing companies (OMCs) could incur losses of ₹10,000-15,000 crore a month unless they raise retail fuel prices or receive government support, analysts said, assuming the Indian basket of crude is around $100 a barrel.

The estimated potential combined losses of the three OMCs — IOC, BPCL, and HPCL — are computed after accounting for the immediate benefit of higher refining margins from low-priced crude inventories.

Brent crossed the psychological threshold of $100/barrel early Monday and soared further to a 45-month high of nearly $120 at one point, amid escalating conflict in West Asia. After the day's trading, it closed around $102, still nearly 25% higher.