Minister of Petroleum and Natural Gas Hardeep Singh Puri stated on Tuesday that India possesses adequate supplies of petrol, diesel, and cooking gas despite ongoing disruptions in the Strait of Hormuz. He emphasized that domestic LPG production has been increased significantly. However, he raised concerns regarding the financial strain on oil marketing companies (OMCs), which are currently facing losses of ₹1,000 crore daily. Projected cumulative losses could reach ₹1 lakh crore within a single quarter if elevated crude prices continue and retail fuel prices remain stable.
Puri noted that the government must eventually decide on how to address this situation, though he refrained from indicating whether a hike in fuel prices was imminent. He highlighted that there have been no increases in petrol and diesel prices in the last four years.
At the CII Annual Business Summit 2026, he pointed out that OMCs are increasingly burdened, selling fuel below cost, with total under-recoveries amounting to around ₹1.98 lakh crore. He warned that sustained high crude oil prices without corresponding increases in retail prices could lead to losses of ₹1 lakh crore for OMCs, a figure that could eliminate the annual profits of companies such as IOC, BPCL, and HPCL.
“How long will the oil companies be able to endure this situation? That is a significant concern,” Puri remarked, indicating that the government will need to address these challenges eventually.
Assuring that supply issues do not exist, he mentioned that India has approximately 60 days’ worth of crude oil supplies, 60 days of LNG inventories, and 45 days of LPG reserves. Fuel demand remains robust, with petrol consumption up by about 6%, while LPG demand has declined to around 75,000 tonnes daily from almost 90,000 tonnes, partly due to seasonal changes. He further noted the enhanced domestic LPG production, which has risen to 54,000 tonnes per day from about 36,000 tonnes.
Puri described Prime Minister Modi’s recent call for moderation in energy consumption as a “visionary” long-term strategy, rather than a signal of imminent restrictions.
“Currently, we are in a situation where we are uncertain about the duration of the blockades or counter-blockades. However, I can assert that unlike other countries facing supply and price volatility, we are experiencing stable prices and supplies,” Puri concluded.
Published on May 12, 2026.
