New Delhi: State-run Coal India Limited (CIL) has said it is absorbing the impact of sharply rising input costs, including explosives and industrial diesel, to protect domestic coal consumers from escalating prices.
In a press release issued on Friday, the Maharatna PSU highlighted that surging operational expenses, triggered largely by higher prices of key inputs, have not been passed on to end users, in order to avoid a cascading impact on the broader economy.
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CIL noted that the cost of ammonium nitrate (AN), a key raw material used in explosives and constituting around 60 percent of their composition, has risen significantly. Prices increased by 44 percent to Rs 72,750 per metric tonne as of April 1, 2026, compared to pre-crisis levels of Rs 50,500 per tonne. The surge follows price stability between August 2025 and January 2026, before a sharp upward trend in recent months amid global supply disruptions linked to the West Asian crisis.
The rise in AN prices has directly impacted the cost of explosives used in opencast mining operations. As a result, the average cost of explosives increased by approximately 26 percent—from Rs 39,588 per metric tonne in February 2026 to Rs 49,783 per metric tonne by the end of March. CIL’s subsidiaries collectively consume around 9 lakh metric tonnes of explosives annually.
Industrial diesel prices have also witnessed a steep rise, climbing by nearly 54 percent—from Rs 92 per litre in mid-March 2026 to Rs 142 per litre as of April 1. During FY2025-26, CIL’s diesel consumption stood at around 4.19 lakh kilolitres. The company said it is compensating contractors for the increased diesel costs, particularly those procuring fuel in bulk for mining operations.
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Despite these pressures, CIL has taken measures to maintain affordability of coal. Some of its subsidiaries have reduced reserve prices under the Single Window Mode Agnostic e-auction, while also increasing the frequency and volumes offered through auctions.
The company reiterated its commitment to ensuring stable and affordable coal supply to the country, aiming to mitigate the impact of rising energy costs on consumers and industry.
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