Oil manufacturing companies’ (OMCs) under-recoveries have seen a notable reduction, as per the latest data shared by Sujata Sharma, joint secretary, according to the Ministry of Petroleum and Natural Gas on Monday.
For petrol, the under-recoveries are down 83% to Rs 3 per litre from Rs 24 per litre on petrol, as on April 1. While diesel’s under-recoveries saw a 75% reduction to Rs 27 per litre from Rs 105 per litre.
Under-recoveries had reduced to Rs 600 crore per day, in the month of May, after the centre’s fourth fuel price hike. This was a further reduction from under-recoveries having gone down to nearly 750 crore per day on May 18, 2026.
The Centre introduced a fuel price hike of Rs 2.7 on an average in the last week of May. A move that was expected to help oil marketing companies cut their overall losses by at least 44%.
The four phased revisions – on May 15, 19, 23 and 25 – took Delhi petrol from Rs 94.77 to Rs 102.12 and diesel from Rs 87.67 to Rs 95.20.
ALSO READ: Govt Forgoes Rs 1.23 Lakh Crore To Support OMCs After Petrol, Diesel Duty Cuts: Sources
This development comes after the centre extended support to OMCs by forgoing Rs 1.23 lakh crore in revenue over 78 days via excise duty cuts on petrol and diesel, in lieu of passing the burden on to consumers.
The aid comes amid a global energy disruption triggered by the West Asia war and blockade of key maritime shipping route Strait of Hormuz. The disruption has pushed fuel prices higher. A majority of India’s major OMCs have not passed the cost increase on to consumers in face of the price hike.