Due to the ongoing conflict between America and Iran, the prices of crude oil have increased across the world, due to which the prices of petrol, diesel and gas have also increased. Common people were already facing problems due to this, and now the government has increased their worries further. Officials say that despite the recent increase in prices, oil companies are incurring losses, which indicates that prices may increase further in the future.
**Statement of Petroleum Ministry**
The Petroleum Ministry recently held a media briefing, stating that state-owned oil companies were incurring losses of around ₹30 per liter on diesel, ₹6 per liter on petrol and around ₹700 on domestic LPG cylinders. Overall, these companies are incurring a loss of ₹600-700 crore every day. During the press conference, Praveen Mal Khanuja, Additional Secretary in the Petroleum Ministry, said, “There is a loss of about ₹30 per liter on diesel. When you buy diesel for ₹95 in Delhi, the company actually bears the burden of the remaining ₹30; similarly, in the case of petrol, the loss is about ₹6 per litre. The daily loss is approximately It is ₹600-700 crore.”
**Obstruction in the Strait of Hormuz is the reason for this**
The conflict between Iran and the US has led to the blockage of the Strait of Hormuz, causing crude oil prices to rise across the world. This has affected India’s state-run oil companies (OMCs), as they are selling fuel at lower rates to domestic customers, increasing the financial burden on these companies.
Meanwhile, it is worth noting that on June 7, government oil companies had increased the price of domestic LPG cylinder by ₹29. This is the second time cooking gas prices have been raised since the crisis began in the Middle East.
