Thursday, May 28, 2026

Centre cracks down on diesel diversion as oil firms absorb ₹550 crore daily losses

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The informal Group of Ministers (IGoM) on the West Asia crisis, headed by Defence Minister Rajnath Singh, has observed that public sector oil marketing companies (OMCs) are currently absorbing losses of around ₹550 crore per day by not fully passing on elevated international fuel prices to retail consumers during the ongoing geopolitical disruption.The government clarified that this pricing cushion is meant exclusively for retail consumers, while industrial and commercial diesel prices continue to track international rates under the existing pricing policy.

According to the government, a pattern has emerged of certain industrial consumers shifting procurement to retail channels to benefit from protected retail pricing. Authorities have also flagged instances of black marketing by some dealers.

“The Ministry, the OMCs and the State Governments have intensified field enforcement, and the industry associations are being engaged to remind members of the conduct expected,” the IGoM said.The government reiterated that petrol and diesel supplies in the country remain adequate and that there is no supply gap.India is currently the world’s fourth-largest oil refiner, with installed refining capacity of 258.1 million tonnes per annum (MTPA) against domestic consumption of 243.2 million tonnes during the last completed financial year. The country also exports around 61.5 million tonnes of petroleum products annually.The IGoM was also informed that the overall fertiliser stock position in the country remains comfortable ahead of the Kharif sowing season.For Kharif 2026, fertiliser requirement has been assessed at 390.54 lakh metric tonnes (LMT) by the Department of Agriculture and Farmers Welfare. Current availability stands at around 200.47 LMT, or more than 51% of the requirement, significantly higher than the usual stock level of about 33% at this stage.India’s Kharif sowing season is expected to begin in early June with the onset of the southwest monsoon.

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