뉴스

E85 vs Petrol: Why is it cheaper & who can use it?

'E85 fuel to sell at Rs 20/litre discount'

New Delhi: State-run oil companies will sell E85 fuel — a blend of 85% ethanol and 15% petrol — at a discount of Rs 20 per litre to offset the biofuel’s lower energy content, Oil Minister Hardeep Singh Puri said on Friday after inaugurating an E85 dispensing facility at a Delhi petrol pump.The government plans to roll out E85 fuel in phases, with 500 fuel stations targeted by the end of this year and 5,000 by the end of 2027 across India, Puri said.Indian Oil already has a network of 400 fuel stations that can dispense E100 fuel, or pure ethanol with no mix of petrol, across Delhi, Uttar Pradesh, Maharashtra, Karnataka, and Tamil Nadu.Also Read: India to launch E85 fuel today in push for flex fuel mobilityEthanol’s energy content is about one-third lower than that of petrol. To compensate for this, E85 users will receive a Rs 20 per litre discount compared with E20, the regular fuel blend sold across the country that contains 20% ethanol and 80% petrol.The E20 blend will continue to be available at all fuel stations, as most vehicles currently on Indian roads can use blends of up to 20% ethanol.In recent days, Maruti Suzuki and Hero MotoCorp have each launched one vehicle model capable of running on E85 fuel.The simultaneous rollout of compatible vehicles and fuel dispensing infrastructure will help accelerate E85 adoption, Puri said, adding that there was a “pretty compelling case” for shifting to E85 because it would be cheaper, lower emissions and reduce dependence on fuel imports.

Hero MotoCorp shares rise 3% as firm unveils India's first 100cc flex-fuel motorcycles. Check details

Shares of Hero MotoCorp gained 3% to their day’s high of Rs 4,980 on the BSE on Thursday after the company unveiled its first flex-fuel motorcycles, marking its entry into a segment aimed at supporting India's transition towards cleaner and more sustainable mobility solutions.The country's largest two-wheeler manufacturer launched flex-fuel versions of its flagship Splendor+ and HF Deluxe motorcycles, making them India's first flex-fuel motorcycles in the 100cc category. The motorcycles are compatible with ethanol-blended fuels ranging from E20 to E85 and are designed for everyday commuting without compromising on performance or affordability.Hero MotoCorp said the new range is aimed at reducing the carbon footprint of daily transportation while aligning with India's goal of lowering economic carbon intensity by 45% by 2030.The motorcycles were unveiled in New Delhi ahead of World Environment Day in the presence of Union Minister for Road Transport and Highways Nitin Gadkari, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri and Hero MotoCorp Chief Executive Officer Harshavardhan Chitale.Speaking at the event, Gadkari said the introduction of flex-fuel motorcycles in the mass-market segment would support ethanol adoption, help reduce crude oil imports, strengthen farmers' incomes and contribute to the government's vision of Atmanirbhar Bharat and Viksit Bharat.Puri said the launch represents another milestone in India's efforts to build a mobility ecosystem powered by cleaner and domestically produced fuels. He added that wider adoption of such vehicles could improve energy security, lower carbon emissions and reduce dependence on imported crude oil while strengthening the country's biofuels ecosystem.Chitale said the flex-fuel-ready Splendor+ and HF Deluxe were developed at the company's Centre for Innovation & Technology in Jaipur and reflect Hero MotoCorp's focus on future-ready and locally relevant technologies. He added that the motorcycles have minimal-to-no import content and reinforce India's manufacturing capabilities.Hero MotoCorp said the flex-fuel portfolio will be introduced in Delhi and select regions of Maharashtra in July 2026, followed by a nationwide rollout. The HF Deluxe Flex Fuel has been priced at Rs 72,792 (ex-showroom Delhi), while the Splendor+ Flex Fuel will be available at Rs 82,710 (ex-showroom Delhi).(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Petrol price hikes in India are very minor: Puri

The ₹ warning: Six actions for biz leaders

The Indian rupee is trading around Rs. 95-96 to the dollar in late May 2026, setting fresh record lows. Markets are openly discussing the Rs. 100 threshold. The rupee has weakened in almost every year since 2014 and has lost approximately half its value against the dollar over that period. The end of this currency depreciation is not in sight. The factors that would stop it are not yet visible.The government is acting. State run oil companies have implemented four fuel price hikes in ten days as of May 25, taking petrol in Delhi past Rs. 102 per litre. This is the right and necessary response to the energy cost reality created by the Iran war. Crucially, the Modi government has also done its part on the macroeconomic front, consistently and aggressively reducing the fiscal deficit as a percentage of GDP to maintain structural stability.Yet, the currency pressure persists. The energy price impact has not yet fully reached Indian consumers and supply chains. It is coming.Uday Kotak said it plainly at the CII Annual Business Summit on May 12: "Be ready for tough times rather than waiting for the shock to hit us." He was right.Also read | Manufactured monopoly: How industrial policy is structuring monopolies in IndiaThis is not a time to panic. But it is a time to act. The leaders who move now will have options. Those who wait will not.The Overriding Factor: The Psychology of the PlayersWhy is the currency declining despite strong domestic fiscal discipline? Because exchange rates are not driven by mathematical models alone. The currency decline is highly affected—and accelerated—by the psychology of all players engaged in this endeavor.Currency movements are deeply behavioral. When a currency visualizes a downward trend, psychology shifts from calculation to self-protection and speculation. Every player in the ecosystem operates under this psychological weight:Corporate CFOs and Treasurers: Instead of hedging normally, they rush to cover future dollar liabilities early, hoarding hard currency and inadvertently worsening the scarcity.Foreign Investors: They begin to judge their returns not by the quality of Indian business operations, but by the eroding value of the conversion rate.Importers and Exporters: Importers advance their payments to avoid paying more tomorrow; exporters delay converting their dollar earnings back into rupees, waiting for a "better" rate. This collective psychology creates a self-fulfilling prophecy.Investors, CFOs, and FDI decision makers extrapolate what is happening now into the future. When they see a currency that has lost approximately half its value since 2014 with no clear floor in sight, their psychological pivot alters market realities.Also read | India tightens checks on overseas flows as currency pressure mounts, sources sayThe cascading timeline of Foreign Portfolio Investor (FPI) equity behavior perfectly mirrors this psychological shift from rational evaluation to systemic risk aversion:2024 (The Calculation Phase): Rupee averages Rs. 83-84. FPI flows remain positive (+$12 billion) as investors trade on strong domestic corporate earnings.2025 (The Self-Protection Phase): Rupee slides past Rs. 89. Collective psychology shifts to risk mitigation. FPIs withdraw a record $18.4 billion from Indian equities—the largest annual equity outflow on record.Early 2026 (The Capitulation Phase): Rupee breaks past Rs. 95. Sentiment turns into an outright exit strategy. In the first four months of 2026 alone, outflows have already reached $19.1 billion, completely bypassing the entire previous year's record loss in a fraction of the time.FDI agreements are being signed, but capital is delayed because players are psychologically hesitant to deploy funds into a depreciating asset.The Trap of Hard Currency Debt: A Broken Business Model There is a highly significant and dangerous phenomenon unfolding in India today that requires immediate exposure. For years, a specific class of Indian corporates adopted a regular strategy of borrowing heavily in hard currency (External Commercial Borrowings, or ECBs). Lured by low nominal global interest rates, several of these companies over borrowed, treating cheap dollar debt as a permanent structural advantage.Today, that strategy has become a trap. The compounding effect of a depreciating rupee, skyrocketing hedging costs, and brutal refinancing realities is fundamentally breaking their business models.Consider the mechanics of this crisis:The Hedging Penalty: Leaving dollar debt unhedged is now corporate roulette. However, buying hedges at current rupee levels has become structurally prohibitive. The cost of protection completely wipes out any interest rate advantage.The Refinancing Wall: Billions in foreign debt are coming due. These over-borrowed companies must now refinance their liabilities at a time when the rupee value has materially deteriorated. They are effectively forced to borrow far more rupees just to pay back the same amount of original dollars.The Crushing Cost of Rupee Capital: As these companies try to pivot back to domestic lenders, they face a severe escalation in their rupee cost of capital.The Growth Verdict: When your cost of capital spikes and your cash flows are consumed by servicing legacy dollar debt, future growth stops. Capital expenditure (CapEx) plans are being frozen. These companies can no longer invest in innovation, capacity, or market expansion. Their business model shifts overnight from aggressive value creation to basic survival. Boards must realize that this is not a temporary treasury headache; it is a structural threat to the company’s future viability.India's forex reserves stand at approximately 10 to 11 months of import cover. Substantial, but being actively deployed to defend the currency. Some imports are non-negotiable: oil, critical inputs, components. These will now cost more. That cost passes through every supply chain.Six Actions for Business Leaders1. Protect your cash and liquidity first. This is the most immediate priority. Map your cash position today. Identify every source of liquidity across the next twelve months. Stress-test it at Rs. 100 and beyond. Which receivables are at risk? Which credit lines are rupee-denominated and which are not? Companies that run into a cash crisis during a currency depreciation cycle lose their options entirely. The CFO must own this analysis and present it to the board within days, not weeks.2. Act now on your foreign currency borrowings, hedging, and refinancing. Do not assume the rupee will recover to Rs. 80. Analyse your full foreign currency exposure across the next three years: every loan, every refinancing date, every hedging contract, every procurement price denominated in foreign currency. Hard currency loans now face refinancing at rupee values that have materially deteriorated. Model every scenario at Rs. 100 and beyond. Your CFO, treasury, and procurement team must be aligned on one instruction: do not run into a liquidity crisis. This analysis must happen now, not at the next quarterly review.3. Build a war room. Most companies have begun thinking about war rooms for supply chain disruptions. Expand the mandate. Currency exposure belongs in the same room. Which of your costs are dollar or euro denominated? Which of your revenues are rupee denominated? Where is the mismatch? What is your break-even exchange rate? If you do not have clear answers today, you are exposed. The war room is not a committee. It is a real-time decision environment with live data, a clear owner, and the authority to act.4. Use the currency depreciation advantage: double your export salesforce. A weaker rupee makes Indian exports more competitive. This window will not stay open indefinitely. Double the salesforce in your export markets now. Use this period to upgrade quality, improve service delivery, and build customer relationships that will last beyond the currency advantage. Indian exporters who invest in capability during this period will emerge stronger regardless of what the rupee does next. Those who simply ride the price advantage without building the underlying business will lose when conditions change.5. Watch your stock and your sector. Banks and financial institutions should already be on high alert. Companies with large foreign currency exposure will see pressure on their financials. Some stock prices are already reflecting this. Go through your sector company by company. Identify who is most exposed. If you are an investor or a lender, this analysis is not optional. The combination of currency depreciation, rising oil prices, and FPI outflows creates a compounding pressure that will surface in earnings before it surfaces in headlines.6. Cut costs aggressively. AI will help. There has never been more urgency to reduce costs than now. And there has never been a better tool to do it. AI can cut most operational costs by as much as 30% across functions: procurement, finance, customer service, logistics, and compliance. McKinsey data confirms companies adopting AI and automation reduce operational costs by 20 to 30 percent. This is not a future opportunity. It is a present imperative. Every rupee of cost removed through AI is a rupee that does not need to be recovered through revenue in a deteriorating currency environment. Start now with your highest-cost functions.The CFO as CaptainCurrency risk is a cash flow risk. Every function that touches foreign currency—procurement, treasury, sales, capex planning— must now report into a single coordinating authority. That authority is the CFO. This is not about hierarchy. It is about clarity. In a currency crisis, fragmented decision-making is as dangerous as wrong decision making. One captain. One consolidated view. Weekly reviews minimum.The Bigger PictureThis currency depreciation is a structural signal, not a cyclical one. India's economy must move from a cheap labour advantage to genuine global value creation.The companies that will survive and thrive are those building products and services that command premium prices in global markets. The rupee's weakness is a reminder that competing on cost alone has limits.The recently concluded trade agreements are a genuine opportunity. Execute them with full force. Build the export pipelines. Add the sales capacity.The businesses that move now, with discipline and clarity, will manage market psychology, navigate the debt trap, and define the next chapter of Indian industry.The shock is coming. Prepare before it arrives.Ram Charan is the author of China’s 90% model. It is restricting India’s industrial progress. Former Director of Hindalco and Muyuan (China).

Check petrol, diesel prices in your city today

India's CPI inflation expected to rise to 4.8%

New Delhi: India's CPI inflation is expected to rise by around 70 bps to 4.8 per cent with crude oil averaging USD 90/bbl in FY27, according to a report by 360 ONE Capital. This projection comes as the ongoing conflict in West Asia and a downgraded domestic monsoon forecast introduce fresh challenges to India's macroeconomic trajectory.The report noted that the conflict in West Asia and the resulting energy supply disruptions warrant a reassessment of key macroeconomic assumptions. "Our revised base case assumes de-escalation by mid-June, with crude oil averaging USD 90/bbl in FY27. Under this scenario, CPI inflation is expected to rise by around 70 bps to 4.8% (from 4.1%), while GDP growth moderates to 6.3% (from 6.7%). The fiscal deficit is projected to widen to 4.6% of GDP (from 4.4%), and the current account deficit to 2.1% of GDP (from 1.3%)," the report stated.Also read: India meets FY26 fiscal deficit goal at 4.4% of GDP despite revenue and global pressuresThe report noted that India's economic momentum remains stable due to domestic consumption and public spending, but geopolitical frictions pose tangible downside risks. Supply routes through the Strait of Hormuz are particularly vital, as India sources nearly 50 per cent of its LPG and around 30 per cent of its natural gas requirements through this route.Even though the "net petroleum import bill has declined from 5.5% of GDP in FY14 to around 3.0% in FY25, the economy remains exposed to a prolonged disruption in energy supplies."On the monetary front, global financial conditions continue to tighten as central banks react to persistent inflationary impulses. While the Reserve Bank of India is expected to keep policy rates unchanged in the upcoming meeting, domestic bond yields face upward pressure from a widening fiscal deficit and higher energy costs.Also read: Manufacturing activity at 3-month high in May despite cost woesThe report mentioned that the impact on macroeconomic variables is likely to be non-linear, implying significantly larger downside risks if the conflict persists. "A further USD 10/bbl increase in crude prices above our base assumption could push inflation to 5.6% (assuming a partial pass-through of around 5% to retail fuel prices), lower GDP growth by an additional 40 bps to 5.9%, widen the current account deficit to 2.5% GDP, and increase the fiscal deficit to 4.8% of GDP," the report added.Compounding these external geopolitical risks, the domestic agricultural outlook faces unexpected pressure. In its Second Long Range Forecast, the IMD downgraded the Southwest Monsoon 2026 forecast to 90 per cent of the Long Period Average (LPA) from 92 per cent estimated in April.This development represents the weakest monsoon outlook since 2015, which raises immediate concerns over overall agricultural output and rural demand.In the global perspective, the IMF has lowered its 2026 global growth forecast by 20 bps, citing risks from the Middle East conflict through higher commodity prices, inflation, and tighter financial conditions.The report stated that under the IMF's reference scenario, "global growth is projected at 3.1% in 2026 and 3.2% in 2027, below both the recent 3.4% pace and the historical average of 3.7%. In adverse scenarios, growth could slow to 2.5% or even 2.0%, accompanied by significantly higher inflation, with emerging markets expected to be disproportionately affected."

Commercial LPG Cylinder cost up by Rs 42

New Delhi: The price of 19-kg commercial LPG cylinders has been increased from June 1, raising input costs for hotels, restaurants and other commercial establishments, while domestic cooking gas rates have been left unchanged, according to industry sources.In Delhi, the price of a 19-kg commercial LPG cylinder has been raised by Rs 42 to Rs 3,113.50. In Kolkata, the increase is steeper at Rs 53.50, taking the retail price to Rs 3,255.50.The price revision comes amid heightened efforts by the government and oil marketing companies (OMCs) to strengthen fuel security and ensure uninterrupted availability of petroleum products across the country.Also read | Refiners adjust to new crude mix as Hormuz crisis tightens supplyIndustry sources said the price of 5-kg Free Trade LPG (FTL) cylinders has also been increased by Rs 11. Following the revision, a 5-kg FTL cylinder will cost Rs 821.50 in Delhi. The revised rates came into effect on June 1.There has been no change in the price of domestic LPG cylinders, providing relief to household consumers at a time when global energy markets continue to remain volatile.The latest revision follows the government's assurance that adequate stocks of petroleum products are available and that there is no shortage of LPG, petrol or diesel in the country.Speaking at an inter-ministerial briefing on Friday, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, said the government is working to bolster energy security through strategic reserves and enhanced inventory management.She said OMCs have been advised to maintain a minimum LPG reserve equivalent to 30 days of consumption and that efforts are underway to strengthen crude oil reserves as well.Also read | India cuts export duties on petrol, diesel and aviation turbine fuelAccording to Sharma, all refineries are operating at optimum levels and domestic LPG production has reached record highs. She said inventories of key fuels remain comfortable and no instances of LPG distributors running dry have been reported.At the same time, authorities have observed unusual spikes in fuel sales in several regions. While part of the increase is attributed to seasonal agricultural demand, bulk purchases have also contributed to higher offtake.Government data showed overall fuel sales growth exceeding 30%, with 14 districts recording more than 100% growth in petrol sales. In contrast, six districts witnessed a decline of about 38% in sales by OMCs.To prevent diversion and hoarding, enforcement agencies have intensified inspections. Over the past four days, around 6,500 raids were conducted involving LPG distribution networks, resulting in multiple FIRs and arrests. Separate inspections at retail fuel outlets led to the seizure of significant quantities of petrol and diesel, along with legal action against violators.Sharma said domestic refineries are currently producing around 50-52 thousand metric tonnes of LPG per day against demand of about 72 thousand metric tonnes, with the balance being met through imports. She added that the backlog in LPG supplies has narrowed to around 4.5 days, indicating an improvement in distribution efficiency.The increase in commercial LPG prices is expected to have a bearing on operating costs for eateries, catering businesses and other commercial users, even as household consumers remain insulated from the latest revision.

India-Oman trade deal goes live June 1

The Comprehensive Economic Partnership Agreement (CEPA) between India and Oman is set to come into force on June 1, marking a significant milestone in bilateral economic relations. Both nations will formally announce the decision on Monday.This marks the fifth free trade agreement (FTA) implemented under the Modi government since 2014. It follows trade pacts rolled out with Mauritius (April 2021), the UAE (May 2022), Australia (December 2022), and the European Free Trade Association (EFTA—comprising Switzerland, Iceland, Liechtenstein, and Norway in October 2025). India has also signed deals with the UK (July 2025) and New Zealand (April 2026), alongside concluding trade talks with the 27-nation European Union (EU) on January 27 this year.CEPA vs FTAModern trade pacts typically span around 20 chapters. These encompass comprehensive regulations across trade in goods, trade in services, investment, intellectual property rights, customs procedures, and dispute settlement mechanisms.Similar bilateral frameworks are also designated as Comprehensive Economic Cooperation Agreements (CECA), Comprehensive Economic Trade Agreements (CETA), or Economic Cooperation and Trade Agreements (ECTA).Also read: India-Oman CEPA to strengthen energy security, trade resilience and export growthIndia-Oman tradeBilateral trade between the two nations reached USD 11.18 billion during 2025-26, up from USD 10.61 billion in 2024-25. India’s exports stood at USD 4.02 billion, while imports from Oman were valued at USD 7.16 billion.In the services domain, India's exports to Oman expanded from USD 397 million in 2020 to USD 665 million in 2024, driven primarily by telecommunications, computer and information, transport, and travel sectors. Conversely, services imports from Oman grew from USD 101 million to USD 197.7 million over the same period, led by transport, travel, telecom, and other business services.What does India gain? The deal unlocks 100% duty-free market access for Indian exports to Oman, covering 98.08% of Oman’s tariff lines, which represents 99.38% of the trade value (based on the 2022-23 average).Immediate Concessions: All zero-duty access comes into effect from "Day One" of the agreement. Currently, only 15.33% of India’s export value (11.34% of tariff lines) enters Oman duty-free under the Most Favoured Nation (MFN) regime.Price Competitiveness: The pact eliminates the current 5% import duty on Indian goods worth USD 3.64 billion.Growth Drivers: Key sectors poised for immediate advantages include textiles, agricultural products, transport equipment, precision instruments, processed food, and gems & jewellery.New Horizons: The agreement unlocks fresh export windows for Indian minerals, chemicals, base metals, machinery, plastic, rubber, automobiles, clocks, instruments, glass, ceramics, marble, and paper.India-Oman CEPA: Key sectoral gainsOman will grant immediate zero-duty access to crucial Indian industrial segments, including:Iron and steelElectrical and industrial machineryMarine products and copper goodsFurthermore, the removal of the 5% tariff is set to directly bolster the competitiveness of Indian vehicles in the Omani market, while securing binding zero-duty access for key finished medicines and vaccines.India protects sensitive sectorsTo insulate local industries and farming communities, India has placed 2,789 tariff lines on its exclusion list.Excluded Categories: Key domestic sectors shielded from tariff concessions include transport equipment, major chemicals, cereals, fruits, vegetables, spices, coffee, tea, and products of animal origin.Manufacturing Safeguards: High-value manufacturing chains including rubber, leather, textiles, footwear, petroleum oils, and mineral-based products remain protected.Agricultural Shielding: Strategic segments such as dairy products, meat, oilseeds, vegetable oils, sugar, and food-processing residues are entirely kept out of the liberalisation purview.Service sector stands to gainWith Oman’s total global services imports standing at USD 12.52 billion in 2024, India’s current share of 5.31% presents significant room for expansion.Oman has made robust commitments regarding the temporary entry and stay of Indian service professionals. Notably, the Intra-Corporate Transferees (ICT) ceiling has been raised from 20% to 50%, allowing Indian firms to deploy a higher volume of managerial and specialist personnel.Additionally, for the first time in any FTA, Oman has locked in specific commitments for professional service providers, benefitting Indian talent in IT, accounting, engineering, medical, education, construction, and consulting fields.Gains for India's agri sectorIndian agricultural exports such as natural honey, potatoes, cashews, boneless meat, and bakery items will secure immediate duty-free entry into Oman.Oman has agreed to dismantle tariffs—which currently range from 5% to 100%—on an array of items. These include cheese, curd, milk, cream, frozen fish, butter, meat, yoghurt, pastries, cakes, chocolate, sugar confectionery, mineral water, alongside animal and vegetable fats and oils.In return, Indian consumers will benefit from cheaper imports of Omani dates, with India granting zero-duty access for up to 2,000 tonnes of the commodity annually. New Delhi is also extending tariff concessions to Oman’s traditional products: Gum Arabica (utilised in food, pharmaceuticals, and cosmetics) and Frankincense (utilised in the incense and perfume sectors).Oman to benefit from tariff concessionsIndia is extending tariff concessions across 77.79% of its total tariff lines (equivalent to 12,556 lines), which encapsulates 94.81% of India’s total imports from Oman by value.For items that hold significant export value for Oman but remain sensitive for domestic industries in India—such as dates, marbles, and specific petrochemical products—liberalisation will be managed via a controlled Tariff-Rate Quota (TRQ) mechanism.India strengthening presence in Middle EastThe Oman CEPA serves as another pillar in India's deepening trade ties with the Gulf Cooperation Council (GCC), following its May 2022 pact with the UAE. New Delhi is set to commence trade talks with Qatar soon, and has already inked terms of reference (TOR) to initiate broader trade pact negotiations with the entire GCC bloc (comprising Saudi Arabia, UAE, Qatar, Kuwait, Oman, and Bahrain).Despite its size, Oman commands vast geopolitical importance as it borders the Strait of Hormuz, a critical maritime chokepoint heavily relied upon by Asian enterprises for oil trade. The nation serves as a strategic gateway for Indian goods and services into the broader Middle Eastern and African markets.Currently, nearly 7 lakh Indian nationals reside in Oman, sending home approximately USD 2 billion in annual remittances. Over 6,000 Indian establishments operate within Oman, and India has clocked USD 615.54 million in foreign direct investment (FDI) from Oman between April 2000 and September 2025. Notably, this CEPA is the first bilateral trade pact Oman has signed with any nation since its agreement with the United States in 2006, cementing its position as India’s third-largest export market within the GCC.

Petrol, diesel prices today on May 30

Gold demand drops 70% after sharp duty hike in India

Kolkata: Gold demand in India slipped about 70% since the government more than doubled import duty from earlier this month, adding to already tepid consumer sentiment amid higher fuel and food prices due to the Iran war.Demand fell to about 7.5 tonnes in the fortnight ended May 27 from around 25 tonnes a year earlier, according to industry estimates. The government increased the import duty on gold to 15% from 6% with effect from May 13."Reports trickling in from jewellers across India shows that there has been a 70% drop in demand after the import duty was hiked," said Surendra Mehta, national secretary of India Bullion & Jewellers Association (IBJA). "The unorganised trade, which comprises 65% of the gold trade, has been worst hit due to the duty hike."Also Read: India's gold import problem may already have a solution at homeJoy Alukkas, chairman of gold jewellery retail chain Joyalukkas, attributed the demand weakness to several factors. "It is not only the high import duty that has dented the demand," he said. "The Prime Minister's appeal to stay away from gold for a year has also impacted consumer sentiment in a big way. At Joyalukkas, we are seeing demand dropping by more than 35%. We are not sure whether it will slip further." 131398034Mehta at IBJA said apart from the gold import duty hike, higher petrol and diesel prices and food items are also weighing on consumer sentiment "as they are not willing to spend on gold now".The effective tax burden on gold, including goods and services tax (GST), has risen to 18.45% from 9.18% after the duty increase. The government raised duties against the backdrop of a weak rupee, elevated crude prices, and geopolitical tensions, while also tightening import rules and capping duty-free imports under the Advance Authorisation Scheme."At present, gold is not in the priority list of consumers," said Mehta. "Moreover, it is now the period of Adhik Maas, when Hindus generally avoid buying anything precious. What is more surprising is that the investment demand for gold has slowed down."Also Read: Kriti Sanon joins GIVA as investor and brand ambassadorThe slump may weigh on investment demand in the second quarter of 2026 after a strong start to the year, said jewellers.Gold Exchange Schemes Take OffIndia's bar and coin demand rose 34% from a year ago to 62.3 tonnes in the March quarter.India consumes about 800-850 tonnes of gold annually. On Friday, gold of 999 purity traded at about ₹1.57 lakh per 10 grams, excluding GST, in Mumbai's spot market.Volumes are weak in south India, traditionally one of the country's biggest gold-consuming markets. Some consumers are also shifting towards lighter and lower-carat jewellery while sales of old gold have risen sharply, according to jewellers. "Consumers are not stretching their budgets," said B Govindan, chairman of Bhima Jewellery. "They are buying whatever fits their budget and therefore choosing lightweight and lower-carat jewellery. On the contrary, there is a huge rush among consumers to sell old gold and take cash back home."Industry executives noted the varied impact of the import duty increase across segments, with many retailers indicating a pause in procurement. "Large chain stores saw a brief period of panic buying after the announcement, driven by expectations of further measures, and while they expect a slowdown in sales, they remain relatively resilient given inventory buffers and continued support from bridal demand," said Kavita Chacko, research head at the World Gold Council (WGC).Mid-sized and regional jewellers are continuing to see demand from affluent customers but are expected to rely more on gold exchange programmes and tighter inventory cycles going forward, she said. "Smaller retailers appear the most vulnerable: already stretched by persistently high prices, they now face added pressure from sales volumes and profit margins," said Chacko.

PC Jeweller shares soar 14% on Q4 PAT jumps 58% YoY, strong management commentary

Shares of PC Jeweller India rallied as much as 14% to their day’s high of Rs 10.48 on the BSE on Friday after the company reported a 58% increase in Q4 net profit to Rs 150 crore, higher from Rs 95 crore in the year-ago period.PC Jeweller reported strong operational performance for the quarter, supported by sustained consumer demand and steady sales momentum. Standalone revenue for Q4 FY26 rose 33% year-on-year (YoY) to Rs 927 crore, compared with Rs 699 crore in the corresponding quarter last year. For the full financial year FY26, the company posted revenue of Rs 3,353 crore, marking a 49% increase over Rs 2,243 crore reported in FY25.EBITDA for the March quarter stood at a profit of Rs 180 crore, up 25% from Rs 144 crore in Q4 FY25, aided by operating leverage and improved cost efficiencies. On a full-year basis, EBITDA rose 67% to Rs 861 crore in FY26, compared with a profit of Rs 517 crore in the previous financial year.Robust outlookThe company said it continues to progress towards its goal of becoming debt-free. As of date, the company has reduced its outstanding debt by more than 90% since the execution of the settlement agreement with banks on 30 September 2024, reflecting significant improvement in its financial position.“We plan for a debt-free balance sheet soon, rapid expansion through opening large format franchise showrooms, market penetration and expansion through opening franchise showrooms under government tie-ups and value chain integration through mining activities,” the management said.During the quarter, a subsidiary of PC Jeweller incorporated PCJ Mining SARL in the Republic of Chad to undertake the extraction of precious metal ores. The company said that in April 2026, PCJ Mining SARL received a licence for semi-mechanized artisanal gold mining from the Ministry of Petroleum, Mining and Oil Geology, Republic of Chad.According to the company, the development offers an opportunity to explore mining operations and could help create vertical integration opportunities across its value chain.Separately, the company received enquiries and feedback from prospective business partners regarding establishing large-format franchise showrooms. The company believes this expansion strategy could help it gain market share from the unorganised sector without requiring additional capital investment.PC Jeweller added that discussions with several prospective partners are at an advanced stage and align with its broader plan to open up to 100 large franchise showrooms over the next 12 to 18 months.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)