Mumbai, May 12 (IANS). Amid growing conflicts in West Asia, Petroleum and Natural Gas Minister Hardeep Singh Puri on Tuesday said that if crude oil prices remain high, then the entire profit of state-owned oil marketing companies (OMCs) for FY 2026 is likely to be wiped out.
Speaking at the ‘CII Annual Business Summit 2026’, the Union Minister said that the energy crisis caused by increasing tensions in the Middle East has put immense pressure on Indian oil companies.
He said that at present the government oil companies are incurring a loss of about Rs 1,000 crore every day. If this situation continues, then the total loss of these companies in a quarter can reach around Rs 1 lakh crore.
Due to US-Iran tension and fears of supply disruption, crude oil prices in the global market have crossed $ 100 per barrel. This has further increased the pressure on oil companies.
Hardeep Singh Puri further said that if losses continue for a quarter at current prices, the entire post-tax profit of government oil companies for FY 2026 could be wiped out.
According to industry estimates given during the discussion, state-run oil companies — Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum — may together register a loss of about Rs 1.2 lakh crore in the first quarter of FY 2027.
This estimate is much higher than the earlier market estimate. Earlier it was believed that if crude oil remained around $120 per barrel, then the companies would suffer a loss of about Rs 27,000 crore every month i.e. about Rs 81,000 crore in a quarter.
Although till now the prices of crude oil have remained below $ 115 per barrel most of the time, but the actual loss is estimated to be higher than the earlier figures.
Due to the rise in energy prices, concerns regarding fuel security and supply have also increased in the country.
Responding to these concerns, Hardeep Puri said that India currently has enough reserves of crude oil and LNG (Liquefied Natural Gas) for about 60 days. The stock of LPG is sufficient for about 45 days.
He said the government has increased LPG production to deal with any possible disruption in supply.
The minister further said that daily LPG production in the country has been increased to around 54,000 tonnes from the earlier 35,000-36,000 tonnes.
–IANS
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