Agencies | New Delhi:
New Delhi, July 2: Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Thursday said the government would review petrol and diesel prices if the recent decline in global crude oil prices remains stable, noting that current retail fuel prices are based on crude oil procured during the peak of the West Asia conflict.
Responding to questions on a possible reduction in fuel prices, Puri said oil marketing companies (OMCs) are still processing crude purchased at significantly higher rates.
“The prices are fixed on the basis of supplies procured a couple of months back. If the situation persists, we will relook it,” the minister said.
Puri explained that although international crude oil prices have eased, the benefit has not yet been passed on to consumers because refiners continue to process costlier crude acquired during the conflict.
“International oil prices have come down, but companies are still processing crude bought at the height of the West Asia crisis,” he said.
The minister said OMCs incurred losses of ₹74,781 crore by selling petrol, diesel and LPG below cost during the period leading up to June 30. He also maintained that despite the conflict, India did not experience fuel shortages, supply disruptions or long queues at petrol pumps.
Highlighting the government’s handling of the situation, Puri said the increase in fuel prices in India was comparatively lower than in several developed and neighbouring countries. Citing figures for the period between June 22 and June 26, he said petrol prices in India rose by around 5 per cent, compared with 17.74 per cent in France, 19.05 per cent in Germany and 18.39 per cent in Italy.
Among India’s neighbours, he said petrol prices increased by 39.77 per cent in Pakistan, 36.66 per cent in Sri Lanka, 20.3 per cent in Nepal and 42.69 per cent in Bangladesh, arguing that India’s price rise remained relatively modest despite the sharp spike in global crude oil prices.
During the height of the conflict, Brent crude prices surged to nearly USD 120 per barrel following the closure of the Strait of Hormuz, resulting in combined daily under-recoveries of around ₹2,400 crore for Indian oil marketing companies.
Since then, Brent crude has retreated to around USD 70 per barrel, broadly returning to pre-conflict levels after the United States and Iran signed a memorandum of understanding aimed at reducing hostilities.
Meanwhile, Nayara Energy earlier this week reduced petrol prices by ₹5 per litre and diesel prices by ₹3 per litre across its network of more than 7,000 fuel stations, raising expectations of a broader revision in retail fuel prices if global crude prices remain stable.
