A weakening Rupee has dented revenues of oil marketing companies (OMCs) by around Rs 22,000 crore in the last one month, sources told CNBC-TV18. A one unit movement in the rupee against the dollar impacts under-recoveries (loss incurred due to sale of fuel products on government rates) by around Rs 9000 crore, sources say further. Rupee currently stands at Rs 57.12 against a dollar.
Being the largest purchasers of dollars in the domestic currency market, oil companies like Bharat Petroleum (BPCL), Hindustan Petroleum (HPCL) and Indian Oil Corp have collectively lost around Rs 2,000 crore in May alone due to constant depreciation in rupee. Oil remains the biggest import item in India.
A constantly falling rupee against the dollar has become a cause of concern for oil marketers who import nearly 70% of the crude oil requirements.
These companies import around 50,000 barrels of crude each day. Now with the Rupee weakening, oil companies have to pay significantly higher amount. Read This: IOC, BPCL, HPCL up after diesel price hike
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
