OMCs Push for Fuel Price Hikes as Losses Grow

State-owned oil marketing companies (OMCs) are pressing the government to raise prices of LPG, petrol, diesel, and aviation turbine fuel (ATF) as mounting losses from elevated crude oil prices become harder to absorb. The companies have been selling these fuels below cost, a gap that widens each time crude rises on global markets. With general elections now concluded, the political constraint that typically freezes fuel price decisions has lifted. During election cycles, governments routinely avoid retail price hikes to limit voter backlash, leaving OMCs to absorb the difference. That buffer is now gone, and the companies are formally pushing for relief. The core problem is the margin squeeze: OMCs buy crude at market prices but sell refined products at government-influenced rates. When crude rises sharply and retail prices stay fixed, losses accumulate on every litre sold. A price hike decision now rests with the government. If approved, consumers would face higher costs at the pump and on cooking gas. Aviation operators could also see input costs rise, which typically flows through to airfare. The timing and scale of any revision remain unclear.