India may eventually have to consider fuel price increases if global crude oil prices remain elevated and losses of oil marketing companies keep mounting, according to Minister of Petroleum and Natural Gas Hardeep Singh Puri said.
After a strong demand in FY26 following the GST cut, the automotive industry is now cautiously optimistic about short term growth as any potential increase in fuel price could result in inflation and impact demand.
While speaking at an event organised by Confederation of India Industries, Puri said state-run oil marketing companies are under severe financial strain as crude prices surged amid prolonged geopolitical tensions and supply disruptions linked to the Strait of Hormuz.
According to him, Puri said oil companies were currently losing around Rs 1,000 crore per day as crude oil prices climbed from about $65 a barrel to nearly $115. “If you look at the fact that oil companies are losing what? Rs 1,000 crores every day,” he said. “How long can you keep it like this?”
The minister said the financial burden on refiners and fuel retailers could become unsustainable if high prices persist.
“Frankly, that is something that worries me,” Puri said when asked how long oil companies could continue absorbing losses. “At some stage, the government will have to take a view on that.”
There have been reports and speculation that the government may raise fuel prices after the recent state elections. Responding to the speculation, Petroleum and Natural Gas Minister Hardeep Singh Puri said fuel price revisions were not linked to elections.
“Somebody said elections are over, now fuel prices will suddenly go up. How many elections have there been in the last four years? The last time prices were raised was in 2022. Since then, there have been general elections and several state elections,” he said.
“It is not my case that prices will never go up. I am saying the two are unrelated,” the minister added.
India, the world’s third-largest oil importer and consumer, has kept petrol and diesel prices largely unchanged despite volatility in global crude markets.
The government has said it wants to protect consumers from inflationary pressures, especially after the pandemic and recent geopolitical conflicts.
At the same time, he stressed there was no immediate supply concern, saying India had adequate stocks of crude oil, LNG and LPG, and that fuel supplies across the country remained uninterrupted despite the ongoing crisis.