The company said this would be the first time it would post negative margins on crude oil sales. This loss comes at a time when crude oil producers around the world are making windfall profits due to record highs in oil prices.

The margin of India's oil major on oil sales is at an all-time low of around 15 cents per barrel, almost a tenth of what it was two years ago. Globally, oil companies have margins of more than $2 per barrel, said a senior ONGC official.

"If oil prices increase any further, our margins on oil sales will turn negative," ONGC Chairman and Managing Director R.S. Sharma said.

He said ONGC planned to approach the Petroleum and Natural Gas Ministry to seek a reduction in the subsidy share paid to the oil marketing companies.