Due to tension between Iran and America, its impact has been seen on many Indian companies. Companies related to diesel, petrol and gas have increased the prices of their products. But the country’s largest government company Coal India has not done this.
Coal India says it has borne the brunt of the surge in operating costs, including rising prices of explosives and industrial diesel. The burden of this has not been passed on to the customers. You will be surprised to know that Coal India, along with its subsidiaries, consumes about 9 lakh tonnes of explosives every year.
Impact on the cost of explosives
The company told the stock market that this sharp increase in the prices of ammonium nitrate has a direct impact on the cost of explosives, which is used in large quantities to reach the coal seams. Due to this, the average cost of explosives increased by 26 percent from Rs 39,588 in February 2026 to Rs 49,783 per tonne by the end of March.
No burden put on customers
The company said that passing on the cost to consumers would have had a massive negative impact on market prices and it was committed to ensuring supply of coal to the country at affordable rates. Coal India, which has more than 80 per cent share in domestic coal production, is also compensating the increased prices of industrial diesel to the contractors working in its mines who buy it in bulk.
Prices increased by 44 percent after the war
The share of ‘Ammonium Nitrate’ in the manufacturing of explosives used in the company’s mines is about 60 percent. Its price has increased by 44 percent from pre-war Rs 50,500 per tonne to Rs 72,750 per tonne by April 1, 2026. Before the West Asia crisis, ammonium nitrate prices for Coal India were stable from August 2025 to January 2026, but they are seeing a continuous increase from March 1, 2026.