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Informist, Monday, May 25, 2026

 

--Govt: Seeing panic buying of fuel in few districts of some states 

--CONTEXT: Govt officials briefing media on West Asia war 

--Govt: Post fuel price hike, oil cos' underrecoveries less than INR 6 bln/day 

 

NEW DELHI – The losses of state-owned oil marketing companies have narrowed to "slightly less" than INR 6 billion per day following the staggered hikes in prices of petrol and diesel, Sujata Sharma, additional secretary in the Ministry of Petroleum and Natural Gas, said Monday. Earlier in the day, oil companies hiked retail fuel prices for the fourth time in May, taking the total increase to INR 7.35 per litre for petrol and INR 7.53 per litre for diesel. Before the price hike, oil companies were losing around INR 10 billion per day. 

 

India is facing its worst energy crisis in decades due to the war in West Asia, with crude oil prices rising more than 50?ter the closure of the Strait of Hormuz in early March. Nearly 50% of India's crude imports pass through this crucial waterway. 

 

According to Sharma, panic-buying of petrol and diesel has been reported in a few districts in some states, including Maharashtra, Gujarat, and Uttar Pradesh. This is primarily due to increased agricultural demand and to bulk consumers shifting to retail pumps. Petrol and diesel prices for commercial sale are unregulated and linked to international crude oil prices, which have surged by around 60% since the war in West Asia broke out on Feb. 28. The prices, which are generally reviewed every fortnight, have been increased accordingly. However, oil marketing companies kept petrol and diesel prices for retail use unchanged until May 15. 

 

On fertiliser availability, another key commodity affected by the war in West Asia, government officials said the overall stock position remains comfortable. Against the assessment of 39.05 million tonnes for this year, the stock as of date is 20.01 million tonnes, which is 50% and significantly higher than the usual level of 33%, Aparna S. Sharma, additional secretary in the Ministry of Chemicals and Fertilisers, said. 

 

According to Aparna Sharma, both domestic production and import of fertiliser have been "substantial" after the war broke out. "The total domestic production has been about 95 lakh metric tonne (9.5 million tonnes), and about 22.60 lakh metric tonne (2.26 million tonnes) of imports have reached our shores, and so a total of 117.6 lakh metric tonne (11.76 million tonnes) of fertiliser has been added to our availability scenario," she said. "Besides, the country has already secured 13.5 lakh metric tonne (1.35 million tonnes) of DAP (Diammonium phosphate) and 9 lakh metric tonne (0.9 million tonnes) of NPK (Nitrogen, Phosphorus, and Potassium) complexes. This will ensure adequate availability during the peak kharif season," she said.  End

 

US$1 = INR 95.23

 

Reported by Priyasmita Dutta

Edited by Saji George Titus

 

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