Due to the price freeze, the Petroleum Ministry will seek compensation from OMC for losses on sales of gasoline and diesel.

Due to low marketing margins on the sale of gasoline, diesel, and domestic LPG, OMCs reported combined losses of Rs 3,805.73 crore in the third quarter.

According to a senior ministry official, the Ministry of Petroleum and Natural Gas will approach the Finance Ministry to request compensation for losses suffered by state-run oil marketing companies (OMCs) as a result of the retail prices of gasoline and diesel remaining unchanged despite the sharp increase in crude oil prices.

For similar losses brought on by rising liquefied petroleum gas (LPG) prices, the union cabinet had approved a one-time grant of Rs 22,000 crore to state-run OMCs Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL) on October 12.

OMCs have suffered losses as a result of increased energy costs worldwide. Diesel has had a significant under-recovery for a while, and it is still present, the official said.

OMCs normally adjust retail gasoline and diesel prices every day, depending on the 15-day rolling average of global benchmark prices. To help control inflation, they had to maintain prices earlier this year despite skyrocketing crude oil prices, which hurt their bottom line.

State-run OMCs reported consolidated losses of Rs 3,805.73 crore in the September quarter as they struggled with low margins on the sale of gasoline, diesel, and domestic LPG. The decision to freeze retail prices of gasoline and diesel despite a sharp increase in crude oil prices has weighed on these companies.

OMCs were "responsible corporate citizens," according to Union Minister of Oil and Natural Gas Hardeep Singh Puri, because they accepted losses during periods of high prices and are now required to make up those losses.