With fuel prices remaining unchanged for almost two months despite a rise in cost, oil companies have started detailing under-recoveries or losses, which are as high as Rs 17.1 per litre on petrol and Rs 20.4 on diesel.

Oil Minister Hardeep Singh Puri said fuel retailers have knocked on the doors of the government seeking ‘relief’ but hastened to add that pricing is their decision.

While refusing to comment on reports of private oil refiners making a killing on importing Russian crude oil at deep discounts and exporting refined petroleum products to the US, the minister said the finance ministry was the appropriate authority to decide on the levy of a windfall tax on high gains the oil and gas producers are making due to surge in international energy prices.

“All our corporate citizens have a sense of responsibility,” he told a news conference here.”These actions (revision in fuel prices) are taken by companies.”

 Oil firms, he said, do not come to him for consultations on revising fuel prices.

 Local pump rates are benchmarked to around USD 85 per barrel crude oil price while Brent is currently trading at USD 113. This has resulted in a gap between cost and selling price, referred to as under-recovery or loss. As of June 2, the industry was losing Rs 17.1 a litre on petrol and Rs 20.4 on diesel.

“They (oil companies) are talking under-recoveries. They are talking about that. As I said, they are responsible corporate citizens and they will take whatever decision they have to,” Puri said.”Yes they come to us, it is an open secret. They come to us and say we need relief here, we need relief there but ultimately it (pricing) is their decision.” He did not elaborate on the relief that oil firms have sought.

Despite a surge in oil prices, state-owned Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) first froze petrol and diesel rates for a record 137 days beginning in early November 2021 when five states including Uttar Pradesh.