New Delhi, May 12: India’s state-run oil marketing companies (OMCs) could see their entire FY26 profits erased if crude oil prices remain elevated, Petroleum Minister Hardeep Singh Puri warned on Tuesday, amid intensifying geopolitical tensions in the Middle East.
Speaking at the CII Annual Business Summit 2026, Puri said the ongoing energy crisis has sharply increased financial pressure on fuel retailers, with OMCs currently incurring losses of nearly ₹1,000 crore per day.
He cautioned that if current trends persist, combined quarterly losses could reach around ₹1 lakh crore, potentially wiping out annual profit after tax for FY26.
The warning comes as global crude prices have surged beyond the $100 per barrel mark, driven by supply disruption concerns linked to the ongoing US-Iran tensions.
India’s three major public sector fuel retailers — Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited — are projected to report combined losses of nearly ₹1.2 lakh crore in the first quarter of FY27 alone, according to industry estimates.
These projections significantly exceed earlier market estimates, which had pegged quarterly losses at around ₹81,000 crore assuming crude prices near $120 per barrel. Despite prices largely staying below $115 so far, losses have already surpassed those expectations.
Rising energy costs have also raised concerns around domestic fuel security. Addressing this, Puri said India currently holds sufficient crude oil and LNG supplies for about 60 days, while LPG stocks can meet demand for around 45 days.
To cushion potential supply shocks, the government has ramped up domestic LPG production from around 35,000–36,000 tonnes per day to nearly 54,000 tonnes, he added.
