The Parliamentary Standing Committee on Finance, headed by BJP leader Bhartruhari Mahtab, on Thursday (June 4, 2026) questioned the government on why, despite making hefty profits, the Oil Marketing Companies have been unable to absorb the oil shock due to the U.S.-Iran stand-off.

The meeting on Thursday (June 4), which was attended by officials from the Department of Economic Affairs and the Chief Economic Adviser of the government, was the first in the series of meetings on the ‘General Economic Situation in the Country’.

Both Opposition and ruling party members raised concerns about the impact of the U.S.-Iran stand-off on the Indian economy.

According to sources, senior Congress leader Manish Tewari, among others, questioned the government on the recent fuel price hike. Ruling party MPs P.P. Chaudhary, Sanjay Seth, and Dinesh Sharma were among those who wanted to know the inflationary impact of the current crisis over the next quarter.

One member pointed out that the OMCs, during the past financial year (FY 2025-26), had registered a profit increase of nearly 130%, and even in the last quarter their revenue was 40% higher than in the corresponding quarter of the previous financial year. Opposition members demanded to know why the OMCs were unable to absorb the recent shock. Officials, as per sources, cited international statistics to reiterate the government’s position that the impact on fuel prices in India has been limited compared to global trends. Unsatisfied with the response, the panel has asked the government to come up with a detailed answer.

Questions were also raised on the heavy dependence on imported raw materials for fertilizer production by domestic manufacturers and its impact on the economy. The government, as per sources, has assured that there were enough stock to see the Rabi season through, and that efforts are on to procure more for the Kharif season.

The dip in Foreign Direct Investment and Foreign Portfolio Investment was also raised, though several members, according to sources, were not satisfied with the government’s reply. Even ruling party members expressed concern over retail inflation, especially the rising cost of basic food items.