Puri signals fuel price hike, says oil companies losing ₹1,000 crore a day

Oil minister Hardeep Singh Puri on Tuesday gave the clearest signal yet that a fuel price revision is on the way, telling the CII Annual Business Summit 2026 that prices and elections are unrelated, rebutting to the widely-held view that the government had been holding off a hike ahead of recent state polls. "I'm not saying prices will not go up. I'm saying prices and elections are unrelated," Puri said.

The under-recovery problem

The minister put a number to the pressure building on state-owned oil companies: under-recoveries are running at nearly ₹1,000 crore a day. With crude oil hovering around $100 a barrel amid the West Asia crisis and disruptions in the Strait of Hormuz, that figure will only grow if prices remain frozen. Puri stopped short of announcing a hike or a timeline, but the direction of his remarks has sparked fresh speculations.

No shortage, but no easy way out

Puri said there is no fuel shortage anywhere in the country and there is no reason for panic. He said India had successfully ramped up domestic LPG production from around 36,000 metric tonnes per day to 54,000–56,000 metric tonnes, sharply reducing dependence on LPG imports that used to come predominantly through the Strait of Hormuz. LPG consumption, which stood at around 90,000 metric tonnes per day, has also come down to roughly 75,000 metric tonnes — partly due to weather and partly due to the government's conservation push.

"Tell me any one country where prices have remained the same and there has been no shortage," he said, making the case that India's management of the crisis has been exceptional by any global benchmark.

The politics of timing

Puri's explicit mention of elections was notable. For months, opposition parties and market analysts had suggested that the government was deliberately delaying a price revision to avoid electoral fallout. By dismissing that link, Puri has effectively indicated that a revision may be in the works.

A day earlier, petroleum secretary Neeraj Mittal had taken a more cautious line, refusing to speculate on any price hike while stressing that the government's immediate focus remained on supply security. Tuesday's remarks from the minister himself carry considerably more weight.

What comes next

CII had separately proposed a phased restoration of the ₹10-per-litre cut in special additional excise duty on petrol and diesel over six to nine months, as crude prices stabilise. Whether the government moves on excise, retail prices or both will define how consumers feel the impact.

Royalty cut boosts upstream stocks

Separately, upstream oil stocks got a shot in the arm on Tuesday after the government slashed royalty rates on crude oil and natural gas production. Royalty on offshore crude was cut to 8% from 9.09%, onshore crude to 10% from 16.66%, and natural gas to 8% from 10% — directly improving profitability for exploration companies. ONGC surged 6% to ₹298.95 and Oil India jumped 8.58% to ₹495.70 on the BSE. Vedanta also rallied around 4% on the back of the same move.