Will Petrol, Diesel Get Cheaper As Crude Oil Cools? Here's What Hardeep Puri Said

New Delhi: Union Minister Hardeep Singh Puri on Thursday said the government might consider lowering petrol and diesel prices if international crude oil rates remain low over the coming weeks.

Addressing a press conference, he said that oil marketing companies had suffered losses of Rs 74,781 crore on the sale of petrol, diesel and LPG up to June 30, as the West Asia crisis drove up fuel prices and led to significant market volatility. “International oil prices have come down, but companies are still processing crude bought at the height of the West Asia crisis," he said.

Explaining the financial impact, Puri said that OMCs' under-recovery on petrol during April-June stood at Rs 19,905 crore, while diesel under-recovery amounted to Rs 1.44 lakh crore. LPG under-recovery for the same period was Rs 24,148 crore, taking the cumulative under-recovery for April-June to Rs 1.88 lakh crore

Highlighting India's strategy to diversify energy imports, the union minister said the country had begun sourcing from nations with which it previously had no trade relations, whilst adding that a number of LPG cargoes from the US, already in the pipeline, had also been received.

Further, he clarified that this diversification effort had begun earlier and was not something initiated over the past four months.

The Union Minister further noted that the government had largely insulated consumers from fluctuations in global crude oil markets, adding that India managed to navigate the recent Hormuz crisis without any significant disruption to fuel supplies. “Even at the most difficult time we were always sufficiently stocked with supplies of crude oil, diesel and LPG due to diversification”, he said.

India has about 1.07 lakh fuel retail outlets and is expected to increase its refining capacity to 309.5 million metric tonnes per annum (MMTPA) by 2030.

Addressing the possibility of a price cut, the petroleum minister said it would become a "legitimate question" should global oil prices remain low over the coming weeks, suggesting that any relief for consumers at the pump would hinge on sustained stability in international markets.

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