No bailout package for OMCs amid high energy prices: official

There is no proposal to provide a bailout package or fiscal support to oil marketing companies (OMCs) despite mounting losses on fuel sales, said Sujata Sharma, joint secretary, petroleum and natural gas ministry, on Monday.

She noted that OMCs are facing losses due to elevated global energy prices while addressing the media on the domestic fuel stock situation amid the West Asia crisis.

"There is no proposal for any support to the OMCs right now. Also, even now, the price of petrol and diesel at the pumps is stable," Sharma said.

She added that the Strait of Hormuz blockade is likely the largest supply disruption. "About 20% of the global energy was carried out through that channel. Several countries have been affected because of the blockade, and we have also been affected by it. But, the Government of India has taken several effective steps and ensured energy supplies with the least possible impact on domestic consumers.”

The government has, in recent years, provided fiscal support to OMCs for losses incurred on the sale of domestic liquefied petroleum gas (LPG).

Reiterating Prime Minister Narendra Modi's appeal on Sunday, the official said: "Let's come together and jointly work towards saving energy in our daily usage, so that the financial impact on the country can be reduced."

While noting that the government has taken a number of steps to insulate consumers from the impact of the global energy price rise, she said domestic firms continue to procure expensive crude oil from the global market and sell products at lower prices in the domestic market, which puts their finances under pressure.

Meanwhile, the informal group of ministers (IGoM) on the West Asia crisis met on Monday to take stock of the domestic fuel situation and explore ways to ensure uninterrupted supplies.

An official statement post the meeting said there is no shortage of any petroleum product. It said that India has 60 days of crude oil, 60 days of natural gas and 45 days of LPG rolling stock.

Swelling subsidy bill

In a tweet on Sunday, petroleum minister Hardeep Singh Puri said that OMCs were incurring losses of up to ₹1,000 crore per day. “Even after this decision, estimated OMC under-recoveries during this quarter itself are expected to surge to ₹2,00,000 crore and losses are expected to be around ₹1,00,000 crore,” he tweeted.

Further, Neeraj Mittal, secretary, petroleum and natural gas ministry, on Monday said that India has maintained nearly 60 days of crude oil and petroleum product stocks along with over one-and-a-half months of LPG reserves amid prolonged disruptions caused by the West Asia war.

“We have maintained almost 60 days of stock for crude, for products, and a month and a half of LPG. Over the last 67 days, we have kept this stock forward, which means we have procured from other sources,” Mittal said during CII’s Annual Business Summit 2026.

Another official said that the Centre may bear an additional fertilizer subsidy burden of around ₹10,000- ₹15,000 crore per month due to rising global prices of urea and other fertilizers. The projected fertilizer subsidy bill for the current fiscal year is ₹1.77 trillion. Mint reported on 5 May that the subsidy bill is expected to rise by a fifth due to the Strait of Hormuz blockade.

"Following a recent crisis period, domestic production and imports have scaled up rapidly, adding approximately 9.7 million tonnes to the total availability. Domestic production alone contributed 7.67mt, while imports reaching Indian ports accounted for 1.9mt," said Aparna S. Sharma, additional secretary, department of fertilizers.

The government also confirmed that approximately 700,000 tonnes of nitrogen (N), phosphorus (P), and potassium (K) have been secured and are expected to arrive at Indian ports through May and June.

Meanwhile, the country’s fertilizer stocks as of 11 May stood at 19.96mt, substantially higher than the 17.85mt recorded a year ago. According to official data, the total fertilizer requirement for Kharif 2026 is around 39.05mt.