India’s major state-owned fuel retailers are facing unprecedented challenges as global oil prices surge, forcing them to sell gasoline and diesel below market rates despite efforts to protect consumers. This pricing strategy is exacerbating losses, with estimates reaching ?1,000 crore daily, according to Oil Minister Hardeep Singh Puri. Modu’s recent push to encourage remote work and fuel conservation aims to mitigate this crisis, but experts warn that prolonged supply disruptions could lead to higher retail fuel costs. The energy sector, already strained by inflation, now faces even greater pressures as OMCs struggle to absorb the shock. While taxes were cut to lower costs, the final price of retail fuels may rise if demand remains high. This situation underscores broader concerns about energy security and the role of international markets in shaping domestic policies.
