Theoretically, these businesses have just two more quarters until their net worth falls into negative territory if things don’t get better and losses stay the same.
The war between the United States and Iran has caused energy shocks that could cost India’s oil marketing businesses Rs 1.2 lakh crore in the first quarter of FY27.
When petroleum stays at $120 per barrel, the loss far surpasses the street projections of losses of Rs 27,000 crore per month, or Rs 81,000 crore per quarter.
Notably, OMCs are still facing a larger loss than expected even though crude oil prices have only momentarily hovered around or above the $120 per barrel threshold, primarily remaining below $115 per barrel.
As of September 2025, the combined net worth of OMC behemoths such Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd., and Hindustan Petroleum Corporation Ltd. was close to Rs 3.48 lakh crore.
With a net worth of Rs 1,97,089 crore, IOCL is the most valuable of these corporations. BPCL has a net worth of Rs 93,936 crore, while HPCL has a net worth of Rs 56,889 crore.
How to Prevent a Crisis
Only price increases for LPG, petrol and diesel may save these OMCs in these severe circumstances. Liquified petroleum gas supplies have been the most severely impacted in the nation since the start of the war, so LPG will see the biggest increase of all.
A residential LPG cylinder currently costs about Rs 912. The price per cylinder would have to be raised by an astounding 105%, or Rs 956, to around Rs 1,868 in order for the oil corporations to survive.
In a similar vein, diesel prices need to be increased by more than 36% to levels of roughly Rs 122 per litre or more, while petrol prices may need to be hiked by 29.5% or Rs 28 to somewhere around Rs 130 per litre (in Mumbai) or above.
Currently, the cost of petrol in major Indian cities ranges from Rs 94 to Rs 107 per litre, while the cost of diesel is between Rs 87 and Rs 96 per litre.
