OMCs Face Heavy ATF Losses, ₹64 Per Litre Hit Despite Price Hike & Rising Global Oil Costs

New Delhi: Oil marketing companies (OMCs) continue to face heavy losses on aviation turbine fuel (ATF) sales despite a recent price increase. The government raised ATF prices for domestic airlines by 8.56 percent, but analysts say this hike provides only short-term relief as global oil prices remain high.

Losses At Rs 64 Per Litre

According to analysts at Nomura, OMCs are currently losing around Rs 64 per litre on ATF sold to domestic airlines. This translates into a marketing loss of about USD 109 per barrel. The losses are mainly due to a sharp rise in global crude oil prices driven by geopolitical tensions.

Massive Annual Loss Estimates

The financial impact is significant. Annual losses from ATF are estimated at around Rs 23,600 crore for Indian Oil Corporation, Rs 9,500 crore for Bharat Petroleum Corporation, and Rs 5,300 crore for Hindustan Petroleum Corporation.

Even though ATF contributes only 2–6 percent of total fuel sales, state-run companies control over 90 percent of the market, with nearly 65 percent of total ATF demand coming from domestic airlines.

Price Increase Details

ATF prices for domestic carriers were increased by Rs 8,289 per kilolitre, taking the rate to Rs 1,04,927 per kilolitre. However, this rise is still lower than what global oil prices would justify.

For foreign airlines and charter operators, prices were raised sharply by 114.5 percent to Rs 2,07,341 per kilolitre, reflecting stronger alignment with global rates.

Other Fuel Prices Also Rise

Along with ATF, prices of commercial LPG and premium petrol were also increased amid firm energy trends. Commercial LPG rates were raised by around 10 percent.

However, OMCs are still facing losses on domestic LPG cylinders, adding further pressure on their overall earnings.

Impact On Gas Companies And Markets

Nomura also highlighted that city gas distributors, especially Gujarat Gas, could be badly affected. This is because of their dependence on costly spot liquefied natural gas, prices of which have doubled since late February 2026.

Meanwhile, shares of major OMCs like Indian Oil, BPCL, and HPCL fell up to 5 percent during intra-day trade on the BSE, reflecting investor concerns over rising losses.

Pressure Likely To Continue

Overall, OMCs remain under strong financial pressure due to rising global energy costs. Unless global oil prices ease or domestic fuel pricing improves, these losses are likely to continue in the near term.