India’s state-run oil marketing companies are at risk of losing their entire profits for FY26 if crude oil prices remain high, warned Petroleum Minister Hardeep Singh Puri. The ongoing energy crisis in the Middle East has intensified pressure on Indian fuel retailers, with companies currently losing close to Rs 1,000 crore daily. Puri estimated that their combined quarterly losses could reach around Rs 1 lakh crore if the current trends persist.
The surge in global crude oil prices, crossing $100 per barrel, is attributed to fears of extended supply disruptions linked to the US-Iran conflict. The financial strain on state-run fuel retailers is severe, with potential losses in a single quarter at prevailing crude price levels enough to wipe out their entire profit after tax for FY26, according to the minister.
Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum, the major public sector oil retailers, are expected to post combined losses of nearly Rs 1.2 lakh crore in the first quarter of FY27 alone, as per industry estimates. Despite earlier projections of lower losses, the actual loss trajectory has surpassed expectations, even with crude trading below $115 per barrel.
The sharp increase in energy prices has raised concerns about domestic fuel security and supply stability. Minister Puri reassured that India currently holds sufficient crude oil reserves and LNG supplies for about 60 days, with LPG stocks adequate for around 45 days. To mitigate potential supply-side shocks, the government has boosted LPG production, increasing daily output from 35,000-36,000 tonnes to nearly 54,000 tonnes.
