Union Petroleum Minister Hardeep Singh Puri on Saturday, 4 July 2026, credited Prime Minister Narendra Modi's leadership for ensuring uninterrupted fuel supply across India during the global energy crisis triggered by the Russia-Ukraine war, stating that oil marketing companies absorbed an additional burden of approximately ₹75,000 crore between April and June to shield ordinary citizens from the price shock.

Context

Puri's post, written in Hindi, opens with a pointed observation: 'संकट की घड़ी में नेतृत्व की असली पहचान होती है' ('True leadership is recognised in times of crisis'). He recalled that as war disrupted global energy markets, crude oil prices surged from around $70 per barrel to $120 per barrel, forcing several countries to raise retail fuel prices by 40–50 per cent, impose rationing, or witness long queues at petrol stations. India, he argued, experienced none of these disruptions.

The minister also acknowledged that attempts were made to spread fear and rumours, and that 'political games were played' — a reference to domestic criticism of the government's fuel pricing policy during the crisis period — but said these efforts 'proved futile' against India's energy management.

Policy Backdrop

The global price spike followed Russia's invasion of Ukraine in February 2022, which sent Brent crude to multi-year highs and strained fuel budgets from Europe to South Asia. The Union government responded on multiple fronts: in May 2022, it cut central excise duty on petrol by ₹8 per litre and on diesel by ₹6 per litre, one of the largest single-step duty reductions in recent years.

Simultaneously, India significantly expanded purchases of discounted Russian crude, diversifying its import basket away from costlier Middle Eastern and North Sea grades. State-owned oil marketing companies (OMCs) — principally Indian Oil Corporation (IOCL), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) — temporarily absorbed under-recoveries on petrol and diesel sales before the government stepped in to compensate them, preventing retail price hikes from fully reflecting the international surge.

Stakeholders and Impact

For Indian fuel consumers — particularly low- and middle-income households dependent on two-wheelers and public transport — the policy translated into price stability at the pump even as peers in Europe, Sri Lanka, and parts of Southeast Asia faced acute shortages or steep price increases. Puri's post frames the ₹75,000 crore absorption as a deliberate policy choice: the state bore the cost so citizens did not have to.

For the OMCs, the episode underscored both their strategic role as instruments of public welfare and the financial risks that role carries. Their balance sheets came under pressure during the crisis, making the subsequent government compensation and excise adjustments critical to their financial health.

What's Next

Puri's post arrives as global energy markets remain volatile, with ongoing geopolitical uncertainty continuing to influence crude benchmarks. Analysts will watch whether the Union Budget brings further rationalisation of central fuel taxes, and whether India accelerates the expansion of its strategic petroleum reserves — currently operational at Mangalore and Padur, with a facility at Chandikhol in the pipeline — to strengthen the buffer against future supply shocks. The minister's framing of the 2022 response as a governance success also signals that energy security will remain a centrepiece of the BJP's political messaging ahead of future electoral cycles.