Coal India Ltd Shields Consumers from Rising Input Costs Amid Global Energy Crisis
CIL absorbs surge in input costs to shield coal users from price hike
Business Standard
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Coal India Ltd (CIL) is absorbing increased input costs, including a 44% rise in ammonium nitrate prices and a 54% surge in diesel prices, to prevent higher coal prices for domestic consumers. The company is implementing measures to maintain stable coal prices and ensure uninterrupted supply amidst global energy volatility.
- 01CIL is absorbing rising input costs to shield consumers from price hikes.
- 02Ammonium nitrate prices have surged 44%, impacting mining expenses.
- 03Diesel prices have increased 54%, affecting mining operations significantly.
- 04CIL is compensating contractors for higher diesel costs to ease their burden.
- 05Measures include reducing coal reserve prices and increasing auction frequency.
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Coal India Ltd (CIL) has announced it will absorb rising input costs, including a 44% increase in ammonium nitrate prices and a 54% surge in industrial diesel prices, in order to shield domestic consumers from higher coal prices. The company emphasized that passing on these costs could negatively impact the economy, particularly for power and industrial users reliant on coal. Currently, ammonium nitrate, which constitutes about 60% of explosives used in mining, has risen from ₹50,500 per tonne to ₹72,750 per tonne as of April 1, 2026. CIL's subsidiaries consume approximately 9 lakh tonnes of explosives annually. Additionally, diesel, a critical input for mining operations, has jumped from ₹92 per litre in mid-March to ₹142 per litre. To mitigate these costs, CIL is compensating contractors who procure fuel in bulk. The company is also taking proactive measures to ensure coal remains affordable and available by reducing reserve prices for coal under the single window mode agnostic e-auction and increasing both the frequency of auctions and the quantity of coal offered. These initiatives aim to stabilize coal prices and ensure an uninterrupted supply despite rising input costs.
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By absorbing input costs, CIL aims to prevent a rise in coal prices, which would directly affect consumers and industries dependent on coal for energy.
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