The move signals the company’s decision to absorb rising costs rather than pass them on to consumers, with a stated objective of keeping coal prices affordable and containing downstream cost pressures.
Coal India said it intends to supply the dry fuel at reasonable prices to support end-users, despite a sharp spike in key input costs.
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Among the major cost pressures, the price of ammonium nitrate, a key raw material for explosives, has surged 44% from pre-war levels of ₹50,500 per metric tonne to ₹72,750 per metric tonne as of April 1, 2026.
Explosives costs have also risen 26%, increasing from ₹39,588 per metric tonne in February 2026 to ₹49,783 per metric tonne by the end of March.
Additionally, industrial diesel prices have jumped 54%, from ₹92 per litre in mid-March to ₹142 per litre as of April 1.
Despite these sharp increases, Coal India’s pricing decision indicates a deliberate effort to shield customers from inflationary pressures, which appears to have weighed on investor sentiment.
