Coal India Absorbs Rising Costs Amid Global Energy Disruptions
Israel-Iran war: Coal India says shielding consumers from cost spike; steps up supply measures
The Economic TimesImage: The Economic Times
Coal India Limited (CIL) is absorbing increased input costs to shield consumers from price hikes due to the Israel-Iran war and global energy disruptions. Key input costs, including explosives and industrial diesel, have surged significantly, prompting CIL to implement measures to stabilize coal prices and maintain supply.
- 01CIL absorbs rising costs to prevent price hikes for consumers.
- 02Ammonium nitrate prices surged 44%, impacting explosives costs by 26%.
- 03Industrial diesel prices increased by 54%, affecting operational expenses.
- 04CIL has reduced auction reserve prices to improve coal availability.
- 05The company's actions aim to mitigate inflationary pressures on the economy.
Advertisement
In-Article Ad
Coal India Limited (CIL) has decided to absorb a significant rise in input costs, particularly due to the ongoing Israel-Iran war, which has led to disruptions in global energy supplies. The price of ammonium nitrate, a critical raw material for explosives, has surged by 44%, raising the cost of explosives used in mining operations by 26%. Additionally, industrial diesel prices have increased by 54%, complicating operational expenses. Despite these challenges, CIL has opted not to pass these costs onto consumers, aiming to prevent a cascading effect on power and industrial prices. To further ensure coal remains affordable, CIL has implemented measures such as reducing reserve prices in its e-auction system and increasing the frequency and quantity of coal auctions. These actions are designed to stabilize coal prices and maintain supply, ultimately limiting broader inflationary impacts on the economy.
Advertisement
In-Article Ad
By absorbing rising costs, Coal India aims to prevent higher energy prices that could affect consumers and industries, helping to maintain economic stability.
Advertisement
In-Article Ad
Reader Poll
Should companies absorb rising costs to protect consumers?
Connecting to poll...
More about Coal India Limited

Coal India Takes Steps to Mitigate Price Increases Amid Rising Operational Costs
Business Standard • Apr 10, 2026

SECL Recruitment 2026: Apply for 1,055 Mining Sirdar and Assistant Foreman Positions
Jagran Josh • Apr 9, 2026

Coal India Reports Decline in Production and Offtake in FY26
Business Standard • Apr 8, 2026
Read the original article
Visit the source for the complete story.



