India’s state-run oil marketing companies are absorbing losses of nearly Rs 30,000 crore every month to keep petrol, diesel and LPG prices unchanged despite the sharp surge in global energy prices triggered by the West Asia conflict, government officials and sources, cited by PTI said on Friday.The financial burden on Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd comes as crude oil prices climbed from about $70 per barrel two months ago to nearly $120 amid supply disruptions and rising shipping risks in the Strait of Hormuz.At a briefing on developments in West Asia, joint secretary in the ministry of petroleum and natural gas Sujata Sharma said the government had so far prioritised shielding consumers from higher fuel costs despite volatility in international markets. “It has been government’s endeavour to keep prices stable so far and that there is no price increase for consumers,” Sharma said. “This has hit finances of OMCs… monthly under-recoveries are of the order of Rs 30,000 crore.”She declined to say whether fuel prices would remain unchanged going forward. “As I said, the endeavour so far has been to see that there is no price increase,” she added.According to PTI sources, daily under-recoveries during April touched around Rs 18 per litre on petrol and Rs 25 per litre on diesel, translating into losses of roughly Rs 700-1,000 crore per day.The sources also said the prolonged pressure could affect the balance sheets and borrowing requirements of oil companies, although investments related to refining expansion, energy security, ethanol blending and transition fuels would continue with government backing.The crisis came after the February 28 strikes by the United States and Israel on Iran escalated tensions across West Asia, disrupting tanker movement across key route Strait of Hormuz and raising freight and insurance costs. India’s dependence on the region left nearly 40 per cent of its crude imports, 90 per cent of LPG imports and 65 per cent of natural gas supplies exposed to disruptions.Meanwhile, the Centre also reduced excise duties to cushion the impact. The special additional excise duty on petrol was cut from Rs 13 per litre to Rs 3, while duty on diesel was reduced from Rs 10 per litre to zero. Officials estimated that without these cuts, under-recoveries would have risen to nearly Rs 62,500 crore. “The government has taken a hit of Rs 14,000 crore a month in cutting the excise duty,” Sharma said.Officials said the combined impact of government intervention and oil company absorption helped India avoid the steep retail fuel price hikes witnessed globally. Petrol prices reportedly rose by about 34 per cent in Spain, 30 per cent in Japan, Italy and Israel, 27 per cent in Germany and 22 per cent in the United Kingdom during the same period.

TG Jones’ lenders have been warned that the retailer faces being put into administration by the end of July if they do not approve restructuring plans to close up to 150 shops.

Modella Capital, the owner of the chain that was formerly WH Smiths high street shops, has laid out its turnaround plan to the company’s creditors.

Its proposals involve Modella injecting some £35 million worth of funding into the business while also slimming down the chain, following eight stores being shut down earlier this week.

It intends to close up to 150 shops as part of the restructuring and said there could be job losses as a result.

It is understood that the proposals say the business would face being put into administration if the plan is not in place by July 31.

The restructuring plan must win the vote of creditors and also get approved at a High Court hearing set for June 29, after which it would take effect.

A spokesman for TG Jones earlier this week said the decision to launch an overhaul had “not been taken lightly”, and that it was an “essential part of the company’s turnaround”.

The company said the retailer’s “forced name change from WH Smith” had had a negative impact on people’s awareness of the brand, while also saying Government policy pushing up business costs was partly to blame.

The chain of high street shops was renamed to TG Jones last year after being bought by Modella, while WH Smith kept its group of stores in travel locations like airports and train stations.

The travel division made up the bulk of its sales and profits prior to the sale of the high street arm, and has grown to more than 1,200 stores across 32 countries.

Air India has told employees that it does not anticipate layoffs despite mounting financial pressures linked to the Middle East conflict, while also directing teams to sharply reduce costs and suspend discretionary spending.During a townhall meeting on Friday, Air India chief human resources officer Ravindra Kumar GP assured staff that job cuts were not expected even as the airline navigates a difficult operating environment.“We don’t anticipate layoffs,” Kumar told employees, according to news agency PTI.The management, however, indicated that annual salary increments would be deferred by at least one quarter due to the uncertain economic situation.Kumar also said the airline would proceed with variable pay for the last financial year and continue with planned promotions.

CEO urges strict cost control

Air India CEO Campbell Wilson asked employees to maintain a “laser sharp focus” on cutting unnecessary expenses and improving operational efficiency.Calling for a “relentless focus on costs in these tough times”, Wilson urged staff to suspend discretionary spending, renegotiate rates wherever possible and defer non-critical expenditures.“There must be a laser sharp focus on eliminating wastage and leakages,” he said, as per PTI.The townhall was also attended by chief financial officer Sanjay Sharma.

Middle East conflict raises pressure

The Tata Group-owned carrier is facing multiple headwinds due to the ongoing Middle East conflict, which has significantly increased operational costs.Airspace restrictions and rising jet fuel prices have added pressure on the loss-making airline at a time when it is implementing an ambitious transformation plan aimed at modernising operations and improving profitability.The conflict-driven disruptions have impacted flight routes and increased fuel expenses for airlines globally, with carriers operating international routes among the worst affected.