The Oil Minister says that gasoline and diesel prices may fall with the arrival of cheaper crude
Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Saturday indicated that petrol and diesel prices could be reduced if recently procured low-priced crude oil reaches Indian refineries, while asserting that domestic fuel prices have seen only a limited increase despite sharp fluctuations in global oil markets.Oil marketing companies are currently processing crude purchased at higher prices, and any benefit from lower international crude oil prices will take time to reflect in retail fuel prices, Puri said at a press conference in Uttar Pradesh’s Sonbhadra district.
He said: “At present, companies have stocks of crude oil purchased at higher prices. When crude oil purchased at lower prices reaches them, there is a possibility that fuel prices will fall.”
Puri defends fuel prices amid global fluctuations
The minister stressed that fuel prices in India have remained relatively stable despite turmoil in global energy markets and geopolitical tensions, especially around the Strait of Hormuz.“If we look at the situation in real terms, there has been no increase in petrol and diesel prices in the country,” Puri said.He noted that the Narendra Modi government had reduced central excise duty on petrol and diesel in November 2021, May 2022, and again recently, absorbing a burden of around Rs 10 per liter on both fuels.
In response to a question about domestic fuel prices, Puri said: “There are 193 countries in the United Nations and only Japan has seen a rise in oil prices less than India.”He added that the overall rise in petrol and diesel prices was limited to around Rs 7.60 lakh and claimed that compared to the levels prevailing during the Russia-Ukraine conflict in 2022, fuel prices have not actually increased.Puri also said that oil marketing companies are currently losing around Rs 1,000 crore daily, but the government has ensured that consumers are protected from the full impact of rising crude oil prices.
Fuel prices rose amid tensions in the Middle East
Fuel prices have risen sharply in recent weeks, as geopolitical tensions in West Asia disrupt global energy markets.Petrol and diesel prices have risen by around Rs 7.5 per liter since the Middle East crisis began, with multiple revisions announced within a short period.The increases have raised concerns about inflation, transport costs and pressure on household budgets, while rising fuel prices have also affected logistics and supply chains.Industry experts have warned that rising crude oil prices and a weak rupee continue to pressure OMC margins, despite recent fuel price revisions.
Sonbhadra emerged as a model district
During his visit, Puri also highlighted development initiatives in Sonbhadra and Uttar Pradesh.He said Sonbhadra had secured first place in the Delta Rating Scheme of the Government of India and was moving beyond its image as a backward district.“Sonbhadra is emerging from the identity of backwardness and will soon establish itself as a model district,” he said.Puri said the per capita income in the district has risen from Rs 43,000 in 2018 to around Rs 1.2 lakh currently.He also highlighted the economic growth in Uttar Pradesh, noting that the state’s GDP rose from around Rs 13,000 crore in 2016-17 to nearly Rs 36,000 crore.The minister said that the Indian economy has expanded significantly over the past 12 years and is moving steadily towards becoming the third largest economy in the world.