The Secret Oil Cartel in India: How 5 Companies Control 90% of Oil Imports—and What You Can Do About It

Ever wondered why #petrol and #diesel prices in India rarely drop, even when crude oil prices fall globally? It’s not just about international rates or taxes—there’s a hidden gatekeeping system behind it. Over 90% of India’s edible and fuel oil imports are controlled by just 5 companies, creating a tightly locked cartel. This isn't just big business—this is oil mafia-level monopoly, and the everyday consumer is paying the price 💸.

🔍 The Reality Behind India’s Oil Import Cartel

It’s not just a few players running a good business. This is a deliberately restricted supply chain where the barriers to entry are so high, only a handful of corporates can play. Here's what makes this a true cartel:

1. License Requirement: To import oil, a company must have ₹100+ crore in net worth.

2. Working Capital Block: Importing a single oil vessel needs at least ₹240 crore in upfront working capital (50,000+ tons).

3. Distribution Monopoly: Even if you clear the financial hurdle, distribution channels are locked—controlled by those same five firms.

💥 This means no space for small businesses, no room for local traders, and definitely no scope for price competition.

🧱 Two Major Entry Barriers That Keep This Mafia Untouched

1. Regulatory Licensing Lock

Getting an oil import license isn't like applying for a GST number. You must prove massive corporate capital, detailed paperwork, and fulfill legacy compliance requirements—many of which favor only existing players.

2. Bulk Volume Requirement

Minimum order sizes are designed to scare away new entrants. Who has ₹240 crore lying around for just one cargo? Only mega-corporates. Not your average startup or regional entrepreneur

💰 Who Really Pays the Price? You.

When there’s no competition, there’s no incentive to lower prices. Combine that with heavy central and state taxes on fuel, and we have one of the highest consumer-level fuel costs globally.

Even edible oil—something as basic as what you use to cook—sees inflated MRP because of this tightly held import and supply network.

👎 No price transparency
👎 No supply diversity
👎 No SME participation

This means you and I are overpaying, every single day.

🚫 Why We Don’t See This in Headlines

Unlike the #budgetmafia or #landmafia that get called out publicly, the oil import mafia operates silently. It’s legitimized behind “regulatory compliance” and “national interest,” so no one raises an eyebrow.

But imagine this:

What if your local Kirana store could sell diesel?
What if startup aggregators could directly source edible oils at scale?
What if young entrepreneurs could enter fuel and energy logistics?

We’d have a fairer market, more competition, and much lower prices for end consumers.

🛠️ Can You Enter This Space? Surprisingly, Yes.

Most people think entering the oil business is impossible. But there are legal ways—if you know how:

• Special purpose licensing

• Working capital syndicates

• Distribution partnerships

• Compliance handholding

At Shunyatax Global, we help small and mid-scale businesses enter high-barrier markets like oil, energy, and imports. Even if you're starting from scratch.

🧾 Shunyatax Global says that financial clarity starts with informed decisions.
We provide end-to-end #taxfiling, #NRIservices, and #investmentplanning for individuals and businesses.