US-Iran War Oil Crisis: Daily shock of Rs 1,600-1,700 crore to oil companies, will the burden on the government increase?

Bussiness Desk- US-Iran War Oil Crisis: Since the beginning of tension in the Middle East, many countries including America, Japan and Pakistan have increased the prices of petrol and diesel. However, despite incurring huge losses, the Indian government has refrained from increasing prices.

Since the start of hostilities between the US and Iran on February 28, 2026, crude oil prices have been skyrocketing. As tensions increased, prices rose sharply, with occasional slight declines in between. This rise in crude oil prices has had the biggest impact on India’s government petroleum companies.

Oil companies suffer loss of ₹1,600–1,700 crore daily

For the last 10 weeks, oil marketing companies in India have been incurring daily losses of around Rs 1,600 crore to Rs 1,700 crore. The losses of companies like Bharat Petroleum Corporation, Hindustan Petroleum Corporation and Indian Oil Corporation are continuously increasing.

They are currently selling petrol and diesel at the prices which were there two years ago. In the last 10 weeks, these companies have sold fuel at prices below their production cost, due to which they have suffered a combined loss of more than ₹ 1 lakh crore.

Will the burden on the government increase?

The central government had already indicated that it would not pass the burden of rising crude oil prices on the general public. As a result, even when the prices of crude oil increased by 50%, the prices of petrol and diesel were not increased in the country.

Even today, petrol prices in Delhi are around Rs 94 per litre, while diesel remains at around Rs 87 per litre. These prices have remained at the same level as in the last two years.

The increasing tension has also affected the supply of gas, yet, amidst this crisis, the government has increased the price of domestic LPG cylinders by only Rs 60.

However, the prices of commercial LPG cylinders have increased significantly. Earlier this month, the price of commercial cylinders was increased by Rs 933.

How will companies raise capital?

If this surge in crude oil prices continues without any interruption for a long time, then oil companies will need huge amounts of capital. Not only to buy crude oil, but also to meet our daily expenses. In such circumstances, if the prices of petrol and diesel are not increased, the financial burden may fall on the Government of India.