Bharat Petroleum Corp (BPCL) has expressed optimism that the central government will approve a compensation package for the losses it incurred on fuel sales between April and June. The company’s Director of Finance, VRK Gupta, said that past precedents show the government has stepped in to provide financial assistance, and BPCL is hoping for a similar outcome this time.
BPCL has already communicated the figures for LPG recoveries and the impact on marketing margins to the authorities. Official sources confirm that oil marketing companies (OMCs) are seeking compensation for about ₹75,000 crore of losses suffered on petrol, diesel and LPG sales during the high‑price period.
The finance ministry is currently evaluating the request and is in contact with the petroleum ministry. While the approved amount may be lower than the claimed ₹75,000 crore, a decision is expected by the end of August or early September, after which the Cabinet must ratify the package.
Last year, the government had provided ₹22,000 crore in 2022 and ₹30,000 crore in 2025 to offset OMC losses from selling LPG below market prices. That compensation was paid in twelve tranches, with OMCs already receiving five monthly installments.
Union Minister Hardeep Singh Puri confirmed on July 2 that OMCs recorded a total loss of ₹74,781 crore on petrol, diesel and LPG sales up to June 30, as global crude prices surged amid the West Asia conflict.
During April–June, OMCs’ under‑recoveries stood at ₹19,905 crore for petrol, ₹1.44 lakh crore for diesel and ₹24,148 crore for LPG, amounting to a cumulative under‑recovery of ₹1.88 lakh crore. Including prior year LPG recoveries, the total under‑recovery reaches ₹2.1 lakh crore.
Crude oil prices were highly volatile during the period. Brent crude fell to about $90 per barrel on April 17 after a temporary ceasefire, then spiked to $126.41 on April 30 amid fears of renewed hostilities. The monthly average hovered around $117. Prices stayed above $110 in early May before dropping to $92.05 by month’s end, and fell further to an average of $85 in June.
In July, Brent prices surged past $100 per barrel on July 24, reflecting renewed tensions in the Strait of Hormuz following the collapse of the ceasefire. These fluctuations have had a direct impact on OMCs’ margins and the compensation claims they are pursuing.