India evaluates pressure on fuel retailers amid rising global oil prices

Tuesday 12 May 2026 - 08:00

The Indian government is closely monitoring the financial situation of state-run fuel retailers as global oil prices continue to rise due to geopolitical tensions in the Middle East.

Hardeep Singh Puri stated that authorities will eventually need to assess how long public fuel companies can continue absorbing losses caused by selling petrol and diesel below international market prices.

Global fuel prices have increased sharply in recent months following supply disruptions linked to regional conflicts. However, several governments, including India, have attempted to keep domestic fuel prices stable in order to protect consumers from rising inflation and higher transportation costs.

According to industry estimates, Indian fuel retailers are currently facing significant losses on diesel and petrol sales. Analysts believe the situation could place growing pressure on public finances and energy companies if international crude oil prices remain elevated for an extended period.

Despite these concerns, Indian authorities have emphasized that the country maintains sufficient strategic energy reserves. Hardeep Singh Puri explained that India currently possesses crude oil and liquefied natural gas reserves capable of covering national demand for several weeks, while liquefied petroleum gas supplies are also considered stable.

The minister also clarified that India has not imported liquefied natural gas from Russia, addressing questions about the country’s energy sourcing strategy amid shifting global trade dynamics.

Energy experts warn that prolonged instability in the Middle East could continue to affect global fuel markets, increase transportation costs and complicate inflation control efforts in large importing countries such as India.

The Indian government is expected to continue balancing consumer protection measures with the financial sustainability of fuel retailers as uncertainty persists in international energy markets.