Consumers could soon get relief from high fuel prices, with Union Petroleum and Natural Gas Minister Hardeep Singh Puri indicating that the government may consider reducing petrol and diesel rates if international crude oil prices remain at lower levels over the coming weeks.
The minister said that although crude oil prices have softened in the global market following an improvement in geopolitical conditions, oil marketing companies are still dealing with the financial impact of purchasing expensive crude during the peak of the West Asia conflict.
Speaking at a media briefing in New Delhi on Thursday, Puri explained that public sector oil companies are continuing to process crude oil bought when international prices had surged sharply. According to him, these companies have incurred losses of around Rs 74,781 crore on the sale of petrol, diesel and liquefied petroleum gas (LPG) up to June 30.
He indicated that if global crude prices remain stable for the next few weeks, the government could review retail fuel prices, raising hopes of a possible reduction in petrol and diesel rates.
The minister also highlighted the country’s energy infrastructure expansion, stating that several refinery projects are progressing rapidly and are expected to become operational within the next six to twelve months. Once completed, India’s total refining capacity is expected to reach nearly 300 million metric tonnes per annum, strengthening the country’s energy security.
Puri said India managed the recent global energy crisis without major disruptions despite severe pressure on international supply chains. He noted that there were no widespread shortages, fuel station closures or long queues during the difficult months between March and June, even as global markets faced uncertainty.
Global oil supplies were severely affected after tensions between the United States and Iran disrupted shipping through the strategically important Strait of Hormuz, a route that carries nearly one-fifth of the world’s crude oil shipments. India had repeatedly stressed the importance of keeping the maritime corridor open to ensure uninterrupted energy supplies.
The situation has improved considerably following a peace agreement between the United States and Iran, leading to a decline in Brent crude prices in international markets. However, retail petrol and diesel prices in India have remained unchanged so far.
Earlier this week, the Centre also withdrew temporary restrictions imposed on the sale and distribution of petrol and diesel after reviewing the country’s fuel supply situation. The government said the decision reflected the restoration of normal supply conditions and adequate fuel availability across the country.
With international crude prices showing signs of stability, attention is now focused on whether consumers could soon see lower fuel prices at petrol pumps if the current trend continues.
