Petrol and Diesel Prices: OMCs Suffer Heavy Losses, Daily Deficit Touches Rs 1,000 Crore

India's Energy Security Concerns Rise Amid Repeated Appeals for Fuel Conservation

Concerns over India's energy security are escalating after Prime Minister Narendra Modi urged citizens to reduce fuel consumption, edible oil usage, and defer gold purchases for the next year. This latest appeal comes as petrol and diesel prices remain under scrutiny, with the Centre yet to announce any retail fuel price revision. As a result, questions are being raised over the possibility of fuel rationing.

A day after Prime Minister Modi's appeal, the government convened a high-level ministerial review to discuss the evolving West Asia crisis. The meeting, chaired by Defence Minister Rajnath Singh, was attended by ministers from the petroleum, railways, civil aviation, fertilisers, ports, and science ministries. Despite the government's reassurances, state-run oil marketing companies (OMCs) are currently absorbing losses of nearly Rs 1,000 crore per day to shield consumers from the spike in global crude oil prices.

Current Fuel Reserves and Foreign Exchange Reserves

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According to the government's official briefing, India currently has adequate reserves to manage current supply risks. Officials also informed ministers that India's foreign exchange reserves remain comfortable at $703 billion, offering an additional buffer against external energy shocks.

Despite these reassurances, the government acknowledged the mounting economic cost of elevated global oil prices. International crude prices remain at very high levels, imposing a significant cost on the nation. The government said fuel conservation could help reduce that burden, reiterating Prime Minister Modi's appeal for more prudent fuel usage and lower wastage in the national interest.