New Delhi, May 18 -- State-owned oil firms have reduced their combined daily losses to Rs.750 crore from Rs.1,000 crore after a Rs.3-per-litre fuel price hike from Friday, but remain significantly under-recovered, a government official said.

Addressing the media on Monday, Sujata Sharma, joint secretary, petroleum ministry, said post the recent hike in petrol and diesel, the cumulative daily loss of the three OMCs-Indian Oil Corp. Ltd, Bharat Petroleum Corp. Ltd and Hindustan Petroleum Corp. Ltd-stands at Rs.750 crore.

The increase in retail fuel prices is seen as a partial correction aimed at narrowing under-recoveries faced by state-owned fuel retailers, which have absorbed a significant portion of rising international costs without f...