Iran Conflict Leaves Oil Companies Facing Rs 74781 Crore Loss Says Hardeep Singh Puri

Oil Companies Report Massive Losses

Union Petroleum Minister Hardeep Singh Puri has said that India’s public sector oil companies have incurred losses of Rs 74781 crore up to June 30 after selling petrol, diesel and LPG below their actual cost during the period of conflict in the Middle East. Despite the financial burden, fuel supplies across the country remained stable throughout the crisis.
Costly Crude Still Affecting Refiners
The minister explained that although global crude oil prices have started declining, oil companies are yet to experience the benefit. Refiners generally purchase crude oil nearly two months in advance. As a result, the fuel currently being processed was bought in April and early May when international crude prices were significantly higher due to tensions in West Asia. This delay means lower global prices have not yet translated into reduced operating costs.

Fuel Supply Remained Uninterrupted

Puri highlighted that India successfully managed the challenging months of March, April, May and June without disrupting fuel availability. Petrol pumps continued normal operations across the country, and there were no shortages or long queues despite the global uncertainty. He said the uninterrupted supply reflected effective planning and crisis management.

Expansion Plans Continue

The government is also moving ahead with plans to strengthen the country’s energy infrastructure. According to the minister, India’s annual oil refining capacity is expected to increase to 300 million metric tonnes over the next six to twelve months, boosting the nation’s long term energy security.

Fuel Price Cut May Be Considered

Responding to questions on whether petrol and diesel prices could be reduced, Puri said such a demand would become reasonable if international crude oil prices continue to remain low over the coming weeks. His remarks indicate that consumers could see some relief if the current trend continues.

Crude Prices Ease After Iran Tensions

International crude oil prices began falling during the final week of June after an agreement helped ease tensions between the United States and Iran. Following the improvement in the global market, the Central Government also withdrew temporary restrictions on the sale and distribution of petrol and diesel from July 1.
If crude oil prices remain stable in the international market, Indian consumers are expected to benefit from lower fuel prices in the near future.