At an industry event, India's Oil Minister Hardeep Singh Puri stated that the country must assess how long state-run fuel retailers can continue to sustain losses from selling petrol and diesel below market prices. Currently, retailers are incurring losses of ₹100 ($1.06) per litre on diesel and ₹20 per litre on petrol, as global prices have surged due to disruptions in supply caused by conflicts in the Middle East. Despite these challenges, the Indian government has no plans to compensate oil marketing companies for these losses, raising concerns about the fiscal sustainability of maintaining current fuel prices. The last price hike occurred in April 2022, and any future increase is expected to be significant enough to deter consumer spending on fuel, while not excessively stoking inflation. Additionally, India's balance of payments is projected to worsen sharply, with deficits expected to reach between $66 billion and $70 billion in the 2026-27 fiscal year, compared to an estimated $26 billion to $28 billion in 2025-26. Prime Minister Narendra Modi has called for measures to conserve fuel and manage foreign exchange reserves effectively.