India’s state-run oil marketing companies are reportedly absorbing losses of nearly ₹1,000 crore per day to keep petrol and diesel prices stable despite a sharp rise in global crude oil prices.
The government stated that oil companies are bearing the financial burden to shield consumers from the impact of soaring international energy prices triggered by geopolitical tensions in West Asia.
According to reports, Prime Minister Narendra Modi has also urged citizens to conserve fuel, reduce unnecessary consumption, and avoid non-essential imports amid rising pressure on India’s import bill and foreign exchange reserves.
Industry estimates suggest oil marketing companies are facing massive under-recoveries on petrol, diesel, and LPG sales as crude oil prices remain elevated globally. Some reports indicate monthly losses could reach nearly ₹30,000 crore if current price levels continue.
Despite the financial strain, retail fuel prices in India have largely remained unchanged, helping consumers avoid sudden inflation shocks. However, analysts say prolonged global energy disruptions could eventually force price revisions if crude prices stay elevated for an extended period.
