Govt may levy duty to mop up windfall gains of fuel retailers

NEW DELHI: A sustained low in international oil prices has led to a surge in profits for state-run fuel retailers, prompting the government to consider mopping up these windfall gains through a levy to build a cushion in the event of a future spike in crude prices—a scenario many see as plausible given global geopolitical uncertainty.

The three state-run oil marketing companies (OMCs) — Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) — which enjoy a near monopoly in India’s fuel retail business, posted a combined net profit of ₹34,066.51 crore in the first half of 2025-26, a 269.4% year-on-year jump that exceeded their full-year profit of ₹33,601.83 crore in 2024-25, according to publicly available data.