India has adequate stocks of fuel supply, but OMC losses could hit ₹1 lakh cr: Minister of Petroleum and Natural Gas

Union Minister Hardeep Singh Puri speaks during a panel discussion at the CII Annual Business Summit, in New Delhi | Photo Credit: ANI

Minister of Petroleum and Natural Gas Hardeep Singh Puri on Tuesday said that India has sufficient supplies of petrol, diesel and cooking gas despite the ongoing disruptions around the Strait of Hormuz adding that India has ramped up production of domestic LPG . However, he expressed concerns about the fiscal stress of oil marketing companies that are losing ₹1,000 crore per day with projected cumulative losses of as much as ₹1 lakh crore in a single quarter if elevated crude prices persist and retail fuel prices remain unchanged.

He added that at some stage government will have to take a view on the situation. He did not comment on whether fuel price hikes is on the cards but pointed out that the government has not hiked petrol and diesel prices in four years.

Speaking at the CII Annual Business Summit 2026, Puri pointed out that oil marketing companies are losing ₹1,000 crore per day as they continue to sell petrol, diesel and LPG below cost. He added that cumulative under-recoveries are nearly ₹1.98 lakh crore. He further stated that if elevated crude oil prices persists while retail prices remain unchanged OMCs could face losses of ₹1 lakh crore. “These losses in one quarter are enough to wipe out profits that oil companies earn in the entire year,” he said highlighting the fiscal pressures on IOC, BPCL and HPCL.

“How long will the oil companies be able to take it? Frankly, that’s something that worries me.....Coming back to your question, how long can this happen? At some stage, the government will have to take a view on that,” Puri said.

Assuring that India has no supply-side problems, Puri pointed out that India currently holds around 60 days of crude oil supplies, 60 days of LNG inventories and 45 days of LPG reserves. He noted that fuel demand has remained resilient during the crisis, with petrol consumption rising around 6 per cent, while LPG demand has moderated to about 75,000 tonnes per day from nearly 90,000 tonnes earlier, partly because of seasonal factors. Puri also pointed out that there are more than enough crude oil and LPG inventories and the country has ramped up domestic LPG production to 54,000 tonnes per day from about 36,000 tonnes previously.

He said PM Modi’s recent call for moderation in energy consumption as a "visionary" long-term approach rather than signalling imminent restrictions.

"Today, we are in a situation where we don't know how long the blockades or counter-blockades will continue. But I can tell you categorically that today, we are in a situation where, unlike other countries in the world which have had to either face problems in terms of availability and supply or where prices have gone rampant, we have had stable prices and supplies,” Puri added.

Published on May 12, 2026