State-run oil companies are currently selling petrol at a loss of ₹14 per litre and diesel at ₹18 per litre, according to the article. On top of that, elevated energy prices following the West Asia crisis are expected to push losses on cooking gas LPG to ₹80,000 crore for the current financial year. These are called under-recoveries, the gap between what it costs to supply the fuel and what consumers actually pay at the pump or at the gas agency. The losses exist because retail fuel prices are set by the government and have not been raised to match the jump in global crude and energy costs. The West Asia crisis has kept international energy prices high, widening the gap further. The key thing to watch is whether the government allows oil companies to raise prices, absorbs the losses through budget transfers, or lets the under-recoveries build up on company balance sheets, each path carries different consequences for consumers, fiscal spending, and the stock prices of these firms.
US inflation hit 4.1% in May 2026, its highest level in three years, driven by rising energy prices, keeping a Federal Reserve rate hike in September firmly on the table. Consumer spending rose on tax refunds and a stock market rally, while business investment in AI equipment also rebounded.
RBI data through May 2026 shows that its 85 basis point repo rate cuts since February 2025 are only partially reaching borrowers, with lending rate transmission described as moderated. Slower pass-through limits relief for loan holders and may pressure the RBI to cut rates further to achieve its growth goals.
U.S. consumer prices rose at a 4.2% annual rate in May, the fastest pace in three years, driven by a spike in energy costs. The reading puts pressure on the Federal Reserve to respond, with potential knock-on effects for interest rates, borrowing costs, and household purchasing power.
US inflation rose to a three-year high in May, driven by surging gas and energy prices tied to the Middle East conflict. The reading complicates the Federal Reserve's path toward cutting interest rates and keeps pressure on household budgets.
