India Defers Fuel Price Cuts After 74,781 Crore Loss

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri announced that India's state-run oil marketing companies incurred losses of Rs 74,781 crore through June 30, 2026. These losses resulted from selling petrol, diesel, and LPG below cost to protect consumers during a price spike caused by conflict in West Asia. Total under-recovery for the companies, including prior year figures, reached Rs 2.1 lakh crore.

Despite global crude prices dropping from $119 to approximately $70 per barrel following a peace agreement between the United States and Iran, Puri stated that retail prices will not be cut immediately. He explained that refineries are still processing expensive crude purchased in April and May. A price reduction may be considered by the second half of August if international prices remain stable for several weeks. In contrast, private retailer Nayara Energy has already lowered petrol prices by Rs 5 per litre and diesel by Rs 3 per litre.

Puri detailed efforts to secure energy stability, including diversifying imports from the US and Venezuela and expanding domestic refining capacity toward a target of 300 million metric tonnes per annum. He also defended the E20 ethanol-blended petrol initiative, stating the 20 per cent blending threshold was set after consultations with industry bodies. He clarified that insurance companies have confirmed there are no issues with vehicles using the blend.