India’s oil minister, Hardeep Singh Puri, warns that the country’s major state-owned fuel retailers may face unsustainable losses amid soaring global prices and artificially low domestic prices. These companies sell gasoline and diesel below market rates, shielding consumers from rising costs while absorbing the brunt of energy sector shocks. Modi urged Indians to conserve fuel, but experts predict retail prices will surge if supply disruptions persist. OMCs buy crude at higher prices, yet they sell final products at lower cost, causing daily losses exceeding $1 billion. However, officials argue that these losses are manageable through continued imports and stable energy supplies. Analysts suggest that OMCs might eventually need to increase retail prices in Q2, as neither fiscal buffers nor current reserves can withstand prolonged crises.
