Where is the loss

I read an article which said petroleum prices in pakistan, sri lanka, bangaladesh and nepal are very much lower than that of India.  All these countries depend on imported fuel like India and i was surprised how these countries sell petrol for less cost as the purchase price of crude will be same for all the countries

I realized that taxes might be the reason for this as we have close to 100% central taxes in the form of excise and customs on these products.  Even after considering all these things, there is still a vacuum between cost and selling price.  We can also add state government taxes on it to bridge the gap.  Even after all these things assume that you have to add your margin to arrive at selling price.  Assume that you add 10% margin to the cost.  Even after all these things, our selling price is way too high compared to cost, so i am amused to know where the actual loss is

State run oil marketing companies claim that they are incurring losses and government claims that they have a burden of 1lakh crore as subsidy on petroleum products and price has to be increased.  Successive governments have been doing this without any clarity to the common man.  As a lay man, i would like to know, where is the loss.  If there is a loss, then how the oil companies are paying dividends to the government