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Public-sector oil-marketing companies (OMCs) are absorbing losses of astir ₹550 crore per time by not passing the afloat interaction of rising planetary crude prices to retail consumers amid disruptions triggered by the West Asia conflict, the Government said connected Wednesday (May 27, 2026).
The contented figured prominently during the sixth gathering of the Informal Group of Ministers (IGoM) connected West Asia, chaired by Defence Minister Rajnath Singh astatine Kartavya Bhawan-2 successful New Delhi.
The Government said the OMCs were absorbing losses to support retail consumers from the volatility successful planetary vigor markets.
Further, authorities besides flagged concerns implicit concern users allegedly diverting purchases to retail outlets to instrumentality vantage of the protected substance prices.
Officials noted instances of achromatic selling by immoderate dealers, prompting intensified enforcement measures by the Ministry, lipid companies and State Governments.
“Industrial consumers who divert their purchases from the concern transmission to the retail pump seizure this cushion astatine the outgo of the mean citizen. They besides ore request astatine the pump successful a mode that produces section shortages wherever nary would different exist,” work a govt statement.
According to the government, the country’s privately-owned OMCs person observed an astir 38% diminution successful income of diesel successful the ongoing period — from some retail and bulk consumers — owing to their higher prices.
Thus, shifting their request to public-sector OMCs having comparatively little prices. Further, according to the government, PSU bulk user volumes person besides declined astir 29% - arsenic they migrate to retail outlets. For context, bulk and retail diesel person a terms differential of astir ₹40 per litre.
Defence Minister urges citizens to refrain from panic-buying
In a station connected X aft the meeting, Mr. Singh said the proviso concern successful the state remains mean and appealed to citizens not to indulge successful panic buying of petrol, diesel oregon LPG cylinders.
The Government underlined that India’s substance proviso presumption remains unafraid contempt planetary disruptions. India presently has an installed refining capableness of 258.1 cardinal tonnes per annum (MTPA) against home depletion of 243.2 cardinal tonnes successful the past fiscal year. The state besides exports astir 61.5 cardinal tonnes of petroleum products annually, indicating nary proviso gap.
