Bharat Petroleum Corporation Limited (BPCL) Marketing Director Sukhmal Kumar Jain on Sunday, 24 May asserted that there is no shortage of petrol or diesel anywhere in the country, even as public sector oil marketing companies (OMCs) absorb losses of ₹600 crore to ₹700 crore per day due to volatile global crude prices, rising shipping costs, and a weakening rupee.

Supply Situation on the Ground

Jain said that PSU oil marketing companies operate approximately 85,000 retail outlets out of nearly one lakh fuel stations across India, giving them a dominant share of the retail fuel network. 'I don't think there is any shortage because as far as the consumption part is concerned, it is being fully managed by the public sector oil marketing companies,' he said.

He acknowledged that isolated disruptions may occur for localised reasons, but maintained these are not indicative of a systemic supply failure. 'Stray cases may be there due to various other reasons, but otherwise there is no shortage, whatever I understand in this area,' Jain added.

The Cost Pressure Building Behind the Scenes

While supply remains stable on the surface, the financial strain on OMCs is mounting. Jain pointed to a confluence of pressures — global crude oil price volatility, elevated shipping and insurance costs, and sharp exchange rate movements — as the key drivers of stress.

According to Jain, the rupee-dollar exchange rate, which was earlier hovering around 89–90, has now moved closer to 96, significantly increasing the import bill for oil companies. 'The situation is very volatile, and there are various components. If you have really seen crude oil, then shipping costs, insurance, and even exchange rates, the way they have moved,' he said.

Losses Absorbed to Maintain Supply

Despite these headwinds, Jain confirmed that PSU OMCs are continuing to supply fuel without interruption, effectively absorbing the financial hit to prevent price shocks at the pump. The combined daily losses across public sector oil companies are reportedly in the range of ₹600 crore to ₹700 crore, according to Jain.

This comes amid a broader period of global energy market turbulence, with crude benchmarks remaining unpredictable due to geopolitical developments and demand-supply imbalances. Indian OMCs — which include BPCL, Indian Oil Corporation (IOC), and Hindustan Petroleum Corporation Limited (HPCL) — have historically absorbed under-recoveries during price-sensitive periods rather than pass on the full burden to consumers.

What This Means Going Forward

The scale of daily losses raises questions about how long PSU oil companies can sustain current retail prices without either a government subsidy infusion or a revision in pump prices. Industry observers note that any prolonged period of under-recovery at this magnitude would eventually require policy intervention. For now, the Centre has not announced any price revision or relief package for OMCs. The situation will likely be closely watched in the coming weeks as global crude markets remain in flux.