India, May 16 -- New Delhi, The recent 3 per litre increase in petrol and diesel prices is expected to provide significant relief to state-run oil marketing companies (OMCs) by reducing mounting under-recoveries, according to a report released by SBI Research on Saturday.

The report estimated that the fuel price revision could lower OMC losses by nearly 52,700 crore, equivalent to around 15% of the projected total under-recoveries for FY27.

Public sector oil retailers have been facing sharp financial pressure as retail fuel prices remained largely unchanged despite a sustained rise in global Brent crude oil prices. Government estimates suggest OMCs are currently incurring losses of nearly 1,000 crore per day, translating into an annual...