Article 05: Protection for consumers comes at a cost. Oil companies can’t keep absorbing losses

Source: Indian Express Author: B Ashok (Former Chairman, IOCL) Date: May 11, 2026

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Full Analysis Complete tutor breakdown (done)
My Response My own analysis attempt (pending)
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Summary

The Strait of Hormuz disruption has sent crude prices up 80-100% but Indian consumers have been shielded from price rises — at a cost of Rs 62,000 crore in losses shared between the government and OMCs. The author, a former IOCL chairman, argues this model is unsustainable: OMCs operate on ~1.85% margins and must fund massive capex. The burden must eventually be shared across government, states, and consumers.