$IOC

### OMC Stocks in Focus | Fuel Losses Cross ₹1 Lakh Crore India's state-owned fuel retailers are facing mounting financial pressure as losses from selling petrol, diesel, and LPG below market-linked rates continue to rise. Oil Secretary **Neeraj Mittal** stated that revenue losses for state fuel retailers have reached nearly **₹1 lakh crore** during the current quarter. Borrowings of ** $IOC ** $BPCL **, and ** $HINDPETRO ** have increased as these companies absorb losses arising from elevated crude oil prices. Despite the sharp rise in global crude prices following the Iran conflict, India has increased petrol and diesel prices by less than 10%, compared to 40–50% hikes seen in several other countries. ### Impact on Stocks **Negative for OMCs** Under-recoveries on fuel sales could pressure margins, profitability, and cash flows. **Higher Borrowings** Rising debt levels may increase interest costs and weaken balance-sheet flexibility. **Government Support Key** Investors will monitor potential compensation, subsidy support, or future fuel price revisions. ### Stocks Affected * $IOC * $BPCL * $HINDPETRO **View:** *Near-term Negative* — Persistent under-recoveries and rising borrowings may weigh on earnings until fuel prices are revised or government support emerges.