MUMBAI
High global oil prices could wipe out the entire yearly profits of India’s state-run oil companies, Petroleum Minister Hardeep Singh Puri warned the public in a recent meeting.
Speaking at a business summit, the Minister highlighted that the ongoing conflict in the Middle East has pushed crude prices above $100 per barrel, putting immense pressure on the nation’s fuel retailers.
Currently, major companies like Indian Oil, Bharat Petroleum, and Hindustan Petroleum are losing nearly ₹1,000 crore every single day. Minister Puri estimated that if these high prices continue, the combined losses for just one quarter could reach ₹1 lakh crore. This massive shortfall would be enough to erase all the profits these companies were expected to make during the 2025-26 financial year.
The surge in prices is largely due to fears of supply disruptions caused by tensions between the U.S. and Iran. While industry experts previously predicted high losses, the actual financial damage has already exceeded those early forecasts. This situation has raised concerns about whether fuel prices at the pump will stay stable or if the government will need to step in.
To calm worries about fuel shortages, Minister Puri assured the public that India is well-prepared. The country currently holds enough crude oil and gas reserves to last about 60 days. Additionally, the government has significantly boosted local LPG production to ensure that cooking gas remains available for families. While the financial outlook for oil firms is tough, the Minister emphasized that maintaining a steady energy supply remains the top priority.
