The Chief Minister's Office of Rajasthan on Saturday, 4 July 2026 credited the central government under Prime Minister Narendra Modi for absorbing losses exceeding Rs 75,000 crore incurred by oil marketing companies on diesel and petrol sales between April and June 2026, framing the fiscal relief as part of broader development support for the state.

Context

The post, shared from the official Rajasthan CMO handle, states in Hindi: 'April se June ke beech, diesel-petrol mein 75 hazar crore rupaye se adhik ka ghata, companies ko uthana pada, jiski jimmedari sarkar ne uthayi' — meaning, 'Between April and June, losses exceeding Rs 75,000 crore on diesel and petrol had to be borne by companies; the government took on that responsibility.' The message directly tags @narendramodi and is hashtagged #PMModi4ViksitRajasthan and #AapnoAgraniRajasthan ('Our leading Rajasthan'), tying central energy policy to the state's development narrative.

Policy Backdrop

India's public sector oil marketing companies — primarily Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) — have historically been exposed to under-recoveries when retail fuel prices are held below market cost during periods of elevated global crude prices. The Union government has periodically stepped in through excise duty reductions, direct compensation, or deferred pricing adjustments to shield consumers from price shocks and contain inflation.

A notable precedent came in May 2022, when the Centre cut central excise duty on petrol by Rs 8 per litre and on diesel by Rs 6 per litre amid a surge in international crude prices. The Rajasthan CMO's post appears to reference a similar episode of government-absorbed losses during the first quarter of the 2026-27 fiscal year.

Stakeholders and Impact

The primary stakeholders in such arrangements are the oil marketing companies, whose balance sheets bear the immediate financial strain, and fuel consumers — households and businesses — who benefit from price stability at the pump. When the government assumes responsibility for these losses, it effectively subsidises consumption, protecting household budgets and keeping transport and logistics costs in check.

For Rajasthan, a large state with significant agricultural and transport activity, stable diesel prices carry particular importance for farmers, truckers, and rural consumers. By attributing the relief to PM Modi, the CMO post positions the central intervention as a direct benefit flowing to the state's residents under the Viksit Rajasthan ('Developed Rajasthan') vision.

What's Next

Quarterly financial results of the major oil marketing companies will offer a clearer picture of the actual scale of under-recoveries and how they were offset during the April–June 2026 period. Any further announcements on excise adjustments or compensation packages in the upcoming Union Budget will be closely watched by the energy sector and state governments alike.

The broader pattern of central fiscal support for fuel pricing suggests that as long as global crude volatility persists, the interplay between Union government relief measures and state-level political messaging will remain a recurring feature of India's energy policy landscape.