State Fuel Retailers Face Borrowing Pressure Amid Rising Losses

India’s state-run fuel retailers are approaching their borrowing limits as they continue selling petrol, diesel, and LPG below market prices, according to Oil Secretary Neeraj Mittal. The companies have been absorbing significant losses despite rising global crude oil prices.

Mittal said revenue losses for state fuel retailers reached nearly ₹1 trillion in the first quarter of 2026. As a result, borrowing levels have increased sharply at Indian fuel marketing companies, putting pressure on their financial position.

While several countries have increased retail fuel prices by 40%–50% following the Iran war-driven surge in crude prices, India has raised petrol and diesel prices by less than 10%. The relatively modest increase has helped shield consumers but has added to the financial burden on fuel retailers.

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