Winning Bizness Desk
Mumbai.India’s three state-run oil marketing companies have come under sharp political attack after raising petrol and diesel prices despite posting massive profits for the third consecutive year. Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) together recorded a combined net profit of ₹77,821 crore in FY26, while their estimated turnover touched nearly ₹20 lakh crore.
The fresh fuel price revisions have triggered a heated political debate, with opposition parties accusing the government-owned firms of burdening common citizens even when global conditions had started easing in parts of the market. The criticism has grown louder because fuel prices directly affect household budgets, transport costs and inflation across sectors.
Profits jump sharply across all firms
The latest corporate earnings show a dramatic recovery in profitability for all three oil companies during FY26. Indian Oil’s profit almost tripled compared to the previous year, while BPCL and HPCL nearly doubled their earnings.
Key profit figures reported by OMCs:
- Indian Oil profit rose from ₹12,962 crore in FY25 to ₹36,802 crore in FY26
- BPCL earnings increased from ₹13,275 crore to ₹23,303 crore
- HPCL profit climbed from ₹6,736 crore to ₹18,047 crore
- Combined profit of all three firms stood at ₹77,821 crore in FY26
The numbers have strengthened the opposition’s argument that retail fuel prices could have been kept stable for longer.
Government cites global supply disruptions
The Centre, however, defended the fuel price hikes and linked them to global supply uncertainties following tensions in West Asia. Officials pointed to disruptions around the Strait of Hormuz after the US-Iran conflict, saying crude oil supply risks forced several countries to sharply revise domestic fuel prices.
According to official estimates quoted by news agency PTI, petrol and diesel prices in India increased by nearly 8-9% since the crisis began in late February. The government argued that the increase remained moderate when compared with neighbouring countries where fuel prices reportedly jumped between 20% and 67%.
How government defends the earnings
The government also maintained that profits earned by oil companies eventually support public spending and long-term energy security. Officials said a large portion of earnings returns to the public exchequer through taxes and dividends.
Government’s key arguments include:
- Nearly half of OMC profits return as taxes and dividends
- Funds help finance highways, railways and metro projects
- Retained earnings support refinery expansion plans
- Investments also strengthen India’s energy security
Opposition questions burden on consumers
Opposition leaders have questioned why consumers continue paying higher fuel prices when government-owned companies are already earning strong profits. Critics argue that ordinary citizens are facing pressure from rising transport fares and increasing prices of essential commodities.
Several opposition parties also claimed that frequent fuel price hikes weaken household savings and place extra stress on small businesses dependent on transportation and logistics.
Debate over balancing profits and relief
The controversy has once again reopened the larger debate over how fuel pricing should be balanced in a country heavily dependent on imported crude oil. While the government insists price increases were necessary to manage global shocks, critics believe profitable state-run companies should provide greater relief to consumers during difficult economic periods.
With fuel prices closely tied to inflation and public sentiment, the issue is expected to remain politically sensitive in the months ahead, especially as global crude markets continue witnessing volatility.
