Petroleum and Natural Gas Minister Hardeep Singh Puri on Thursday indicated that the reduction in petrol and diesel prices may not be immediate despite the recent decline in global crude oil prices.
On whether there will be a reduction in fuel prices, Puri said that this would be a “legitimate question” if global crude oil prices remain low over the next few weeks, according to the agency’s report.
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Puri on crude oil prices
Puri also said that India should take advantage of the current phase of low oil prices to enhance its energy security by expanding oil and fuel storage capabilities and enhancing connectivity with bilateral partners.
The country’s total crude oil stocks at ports, terminals, refineries and strategic oil reserves are enough to meet demand for 76 to 80 days, he said, adding that New Delhi “should have more.”
“Maybe that’s one of the lessons we’ve learned.” “We have learned our lesson and will try to increase the stock,” Puri added, referring to the crisis in the Gulf region.
Crude oil prices only started to decline in the second half of June after the United States and Iran reached an agreement to end the conflict.
However, oil marketing companies are still processing crude oil purchased when prices were much higher during the West Asia crisis.
Oil marketing companies are incurring losses $The minister said Rs 74,781 crore worth of petrol, diesel and LPG were sold below cost for the period up to June 30, when global crude oil prices rose in the wake of the conflict in West Asia.
Puri told reporters that global crude oil prices have declined since then, but companies are currently refining the crude they bought at the height of the crisis.
Oil companies typically buy crude oil — the raw material used to produce fuel — at least two months in advance. As a result, the crude oil now being processed was largely purchased in April or early May, when global prices were much higher.
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Puri about oil prices and the US-Iranian war
Last month, Puri said the rise in petrol and diesel prices in India remained limited despite sharp fluctuations in global crude oil markets.
“If we look at the situation in real terms, there has been no increase in petrol and diesel prices in the country,” Puri said while addressing a press conference during his visit to Sonbhadra as part of the Centre’s campaign to mark 12 years of the Narendra Modi government.
He said Prime Minister Narendra Modi cut central excise duty on fuel in November 2021, May 2022 and again recently, with the government absorbing a burden of about $10 per liter on petrol and diesel.
In response to a question about whether domestic fuel prices will fall in light of the decline in global crude oil prices, Puri said: “There are 193 countries in the United Nations and Japan alone has seen a smaller increase in oil prices than India.”
He said that the overall increase in gasoline and diesel prices was limited to $7.60 He added that compared to the prices prevailing during the Russian-Ukrainian conflict that began in 2022, “there was actually no increase.”
