Oil Firms Lose ₹14-18 Per Litre on Fuel Sales

State-run oil companies are currently selling petrol at a loss of ₹14 per litre and diesel at ₹18 per litre, according to the article. On top of that, elevated energy prices following the West Asia crisis are expected to push losses on cooking gas LPG to ₹80,000 crore for the current financial year. These are called under-recoveries, the gap between what it costs to supply the fuel and what consumers actually pay at the pump or at the gas agency. The losses exist because retail fuel prices are set by the government and have not been raised to match the jump in global crude and energy costs. The West Asia crisis has kept international energy prices high, widening the gap further. The key thing to watch is whether the government allows oil companies to raise prices, absorbs the losses through budget transfers, or lets the under-recoveries build up on company balance sheets, each path carries different consequences for consumers, fiscal spending, and the stock prices of these firms.