Mumbai, May 12: Amid escalating conflicts in West Asia, Petroleum and Natural Gas Minister Hardeep Singh Puri stated on Tuesday that if crude oil prices remain high, the entire profits of government oil marketing companies (OMCs) for the fiscal year 2026 could be at risk.
Speaking at the ‘CII Annual Business Summit 2026,’ the minister highlighted that the energy crisis triggered by rising tensions in the Middle East has placed significant pressure on Indian oil companies.
Currently, government oil companies are incurring losses of approximately ₹1,000 crore daily. If this trend continues, the total losses for these companies in a single quarter could reach around ₹1 lakh crore.
Due to tensions between the U.S. and Iran, along with fears of supply disruptions, global crude oil prices have surged past $100 per barrel, further intensifying the pressure on oil companies.
Hardeep Singh Puri further noted that if losses persist at the current prices for a quarter, the entire post-tax profit for government oil companies in fiscal year 2026 could vanish.
Industry estimates discussed during the summit suggest that government oil companies—Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum—could collectively report losses of about ₹1.2 lakh crore in the first quarter of fiscal year 2027.
This estimate is significantly higher than earlier market predictions. Initially, it was believed that if crude oil remained around $120 per barrel, companies would face monthly losses of approximately ₹27,000 crore, translating to about ₹81,000 crore in a quarter.
However, despite crude oil prices generally staying below $115 per barrel, the actual loss estimates are proving to be greater than previously anticipated.
The surge in energy prices has also raised concerns regarding fuel security and supply in the country.
In response to these concerns, Hardeep Puri stated that India currently has sufficient reserves of crude oil and LNG (liquefied natural gas) for about 60 days. Additionally, the stock of LPG is adequate for approximately 45 days.
He mentioned that the government has increased LPG production to address any potential supply disruptions. Daily LPG production has been ramped up from the previous 35,000-36,000 tons to around 54,000 tons.
Arpit Soni has had a passion for journalism since the beginning. Now he has turned this hobby into his profession. Arpit, who is a resident of Udaipur, enjoys editing and writing news related to journalism. He has worked as a Senior Content Producer in several important roles at Bhaskar, Patrika, Pratahkal, Punjab Kesari, and Times. Arpit completed his schooling in Udaipur and Jaipur. He has been working in the media industry for more than 10 years, and his journey is still continuing. ✍️📚
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