India’s state-run oil marketing companies (OMCs) are staring at the possibility of their entire FY26 profits being wiped out if crude oil prices remain elevated, Petroleum Minister Hardeep Singh Puri warned on Tuesday amid escalating tensions in the Middle East.
Speaking at the CII Annual Business Summit 2026 here, Puri said the ongoing energy crisis triggered by the conflict in the Middle East has sharply increased pressure on Indian fuel retailers, with oil marketing companies currently losing nearly Rs 1,000 crore every day.
He estimated that their combined quarterly losses could touch around Rs 1 lakh crore if current trends continue. The warning comes at a time when global crude oil prices have surged past the psychologically important $100 per barrel mark due to fears of prolonged supply disruptions linked to the US-Iran conflict.
“The financial stress on state-run fuel retailers has become so severe that a single quarter of losses at prevailing crude price levels could potentially erase their entire profit after tax for FY26,” the minister stated. The three major public sector oil retailers Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum are projected to report combined losses of nearly Rs 1.2 lakh crore in the first quarter of FY27 alone, according to industry estimates cited during the discussion.
The projected losses are significantly higher than earlier Street estimates, which had pegged losses at around Rs 27,000 crore per month, or roughly Rs 81,000 crore for a quarter, assuming crude prices would hover around $120 per barrel. However, despite crude largely trading below the $115-per-barrel level so far, the actual loss trajectory has already exceeded those forecasts.
The sharp rise in energy prices has also prompted concerns over domestic fuel security and supply stability. Addressing these fears, Puri said India currently has enough crude oil reserves and LNG supplies for about 60 days, while LPG stocks are sufficient for around 45 days.
“The government has ramped up LPG production to cushion any potential supply-side shocks,” he stated. Daily LPG production has been increased from around 35,000-36,000 tonnes to nearly 54,000 tonnes, he added.