India's state oil firms bleeding ₹530 crore a day on subsidised fuel prices

India's state-owned oil marketing companies are collectively losing ₹530 crore every day as they continue to sell petrol, diesel and cooking gas below cost, according to estimates from rating agency ICRA.

The losses break down to ₹8 on every litre of petrol sold and ₹9 on every litre of diesel. The burden is heaviest on liquefied petroleum gas, where companies are absorbing a shortfall of ₹300 per cylinder.

The mounting under-recoveries raise fresh questions about the financial sustainability of the companies and whether the government will be forced to either raise retail prices or step in with compensation.