Oil marketing companies suffered Rs 74,781-crore losses for selling petrol, diesel and LPG below cost for the period up to June 30 when global crude oil prices spiked in the wake of the West Asia conflict, Union petroleum minister Hardeep Singh Puri said on Thursday.

Responding to questions on a possible fuel price cut, Puri said the government would review the situation if lower crude oil prices remain stable.

“The prices are fixed on the basis of supplies procured a couple of months back. If the situation persists, we will relook it," Puri said.

The minister also noted that oil marketing companies (OMCs) are still processing crude purchased at the peak of the West Asia conflict, which is why the decline in international crude prices has not yet translated into lower retail fuel prices.

“International oil prices have come down, but companies are still processing crude bought at the height of the West Asia crisis," he said.

International crude oil prices have come down but companies are still processing crude they bought at the height of the West Asia crisis, Puri told reporters.

Oil companies typically buy crude oil -- the raw material for producing fuel -- at least two months in advance. So, crude oil that is being processed now is essentially what was bought in April or early May when international prices were very high.

Crude oil prices started coming down only in the second half of June after the US and Iran reached an agreement to end the conflict.

The minister also said there was no oil disruption, shortage or long queues outside fuel stations during the war.

Retail fuel prices in India witnessed a cumulative increase of nearly Rs 7.50 per litre following the outbreak of the West Asia conflict. To cushion the initial impact, the government significantly reduced import duty before later allowing retail prices to rise.

With the Strait of Hormuz shut during the conflict, Brent crude prices surged to nearly USD 120 per barrel, while Indian oil marketing companies absorbed combined daily under-recoveries of around Rs 2,400 crore.

Since then, global Brent crude prices have retreated to pre-conflict levels to around USD 70 per barrel after the US and Iran signed a memorandum of understanding (MoU) aimed at ending hostilities.

Earlier this week, Nayara Energy cut petrol prices by Rs 5 per litre and diesel by Rs 3 per litre across its network of more than 7,000 fuel stations.