New Delhi, May 12
Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Tuesday said oil marketing companies are losing around Rs 1,000 crore every day due to rising global crude oil prices and under recoveries, while asserting that the government has managed to maintain stable fuel supplies despite global disruptions.
Speaking at the CII Annual Business Summit 2026, the Union Minister said the under recovery on fuel is expected to reach around Rs 1,98,000 crore, while quarterly losses are estimated at nearly Rs 1 lakh crore.
He noted that crude oil prices have sharply increased from earlier levels of around USD 64-65 per barrel to nearly USD 115 per barrel.
"If you look at the fiscal situation, if you look at the fact that my oil companies are losing Rs 1,000 crores every day, the under recovery is going to be Rs 1,98,000 crores. The losses are Rs 1 lakh crore, if you look at the quarter. In that context, how long can you keep it like this? Where is the oil? It used to be around $64 or $65. It has gone up to $115 in that basket," he said.
He said the past 75 days have been challenging due to global developments, but added that India has ensured uninterrupted energy supplies.
Puri also sought to counter what he termed as "false narratives" surrounding India's energy sector and imports.
"There are a lot of myths going around. I just read a piece which says India refused to import an LNG consignment from the Russian Federation. We've never imported LNG from Russia," he said.
The minister highlighted that India is not only a major energy importer but also the world's third-largest refiner and fourth-largest exporter of petroleum products.
Referring to domestic fuel prices, Puri said India has not raised fuel prices since 2022.
"If I remember correctly, we haven't raised prices for the last four years. We're the only country in the world," he said, adding that fuel price decisions are not linked to elections.
The minister also spoke about the impact of disruptions around the Strait of Hormuz, through which a significant portion of global energy trade passes.
"About 60 per cent of our LPG used to come from the Strait of Hormuz. Now we had to make arrangements," he said.
Puri said India ramped up domestic LPG production from around 35,000-36,000 metric tons per day to 54,000 metric tons per day during the crisis period.
"This by itself is a mind-boggling thing," he stated.
According to the minister, despite global tensions and supply disruptions, there has been no shortage of petrol, diesel or LPG anywhere in the country.
"Every petrol pump in the country has had petrol and diesel. LPG supply is more than enough," he said.
He added that petrol consumption has increased by 6 per cent even during the crisis period, while the government also managed to slightly reduce LPG consumption through supply management measures.
Puri said India's energy sector has remained resilient despite global volatility and efforts by some elements to spread rumours and create panic regarding fuel supplies.
- ANI
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