Bulletin: Indian Oil Corp. Walks Tightrope Between Energy Affordability And Profitability

This report does not constitute a rating action. SINGAPORE (S&P Global Ratings) May 22, 2026--Indian Oil Corp. Ltd. (IOCL) faces a conundrum. Its earnings and cash flow over the next 12 months are turning increasingly uncertain as the Middle East conflict becomes protracted. IOCL has to balance its role of meeting the country's energy needs while absorbing losses due to high crude oil prices. Given the widening gap between the pump prices and crude oil input price, we cannot rule out the possibility of a material base-case revision. Shipping disruption in the Strait of Hormuz, resulting in elevated crude oil prices, potential feedstock shortages should the conflict prolong, and limited changes to the domestic pump prices are factors driving that

...(Editor's Note: S&P Global Ratings believes there is a high degree of unpredictability around the duration and scale of the Middle East war and its potential effect on commodity prices, supply chains, economies, and credit conditions. As a result, our baseline forecasts carry a significant amount of uncertainty. As situations evolve, we will gauge the macro and credit materiality of potential shifts and reassess our guidance accordingly.)...

Bulletin