Petrol, diesel rates may ease as cheaper crude arrives, says oil minister Hardeep Puri

Union petroleum and natural gas minister Hardeep Singh Puri on Saturday indicated that petrol and diesel prices could be reduced if lower-priced crude oil purchased recently reaches Indian refiners, while asserting that domestic fuel prices have seen only a limited increase despite sharp volatility in global oil markets.Addressing a press conference in Uttar Pradesh’s Sonbhadra district, Puri said oil marketing companies (OMCs) were currently processing crude bought at higher prices and any benefit from softer international crude rates would take time to reflect in retail fuel prices.“At present, companies have stocks of crude oil bought at higher prices. When crude purchased at lower prices reaches them, there is a possibility of a reduction in fuel prices,” he said.

Puri defends fuel pricing amid global volatility

The minister maintained that fuel prices in India had remained relatively stable despite disruptions in global energy markets and geopolitical tensions, particularly 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 duties on petrol and diesel in November 2021, May 2022 and again recently, absorbing a burden of around Rs 10 per litre on both fuels.Responding to a question on domestic fuel prices, Puri said, “There are 193 countries in the United Nations and only Japan has seen a lower increase in petroleum prices than India.”He added that the overall rise in petrol and diesel prices had been limited to about Rs 7.60 and claimed that compared with levels prevailing during the Russia-Ukraine conflict in 2022, fuel prices had effectively not increased.Puri also said oil marketing companies were currently losing around Rs 1,000 crore per day, but the government had ensured that consumers were shielded from the full impact of rising crude prices.

Fuel prices rose amid Middle East tensions

Fuel prices have increased sharply in recent weeks as geopolitical tensions in West Asia disrupted global energy markets.Petrol and diesel prices have risen by around Rs 7.5 per litre since the Middle East crisis began, with multiple revisions announced over a short period.The increases have raised concerns about inflation, transport costs and pressure on household budgets, while higher fuel prices have also affected logistics and supply chains.Industry experts have warned that elevated crude prices and a weaker rupee continue to put pressure on OMC margins, despite recent fuel price revisions.

Sonbhadra emerging as model district

During his visit, Puri also highlighted development initiatives in Sonbhadra and Uttar Pradesh.He said Sonbhadra had secured the top position in the Government of India’s Delta Ranking programme and was moving beyond its image as a backward district.“Sonbhadra is moving out of the identity of backwardness and will soon establish itself as a model district,” he said.Puri said the district’s per capita income had increased from Rs 43,000 in 2018 to around Rs 1.2 lakh currently.He also highlighted Uttar Pradesh’s economic growth, noting that the state’s gross state domestic product had risen from about Rs 13 lakh crore in 2016-17 to nearly Rs 36 lakh crore.The minister said India’s economy had expanded significantly over the past 12 years and was moving steadily towards becoming the world’s third-largest economy.