Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Saturday hinted that petrol and diesel prices could ease if recently purchased low-cost crude reaches Indian refiners, while he stressed that domestic fuel prices have seen only limited rise despite sharp volatility in global oil markets.Addressing a press conference in Uttar Pradesh’s Sonbhadra district, Puri said oil marketing companies (OMCs) are currently processing crude oil purchased at higher prices and any benefits from soft international crude rates will take time to be reflected in retail fuel prices.“At present, companies have stocks of crude oil purchased at higher prices. When the crude oil purchased at lower prices reaches them, there is a possibility of reduction in fuel prices,” he said.
Puri defends fuel pricing amid global instability
The minister said fuel prices in India have remained relatively stable despite disruptions in global energy markets and geopolitical tensions, particularly around the Strait of Hormuz.Puri said, “If we look at the actual situation, there has been no increase in the prices of petrol and diesel in the country.”He said the Narendra Modi government had cut central excise duty on petrol and diesel in November 2021, May 2022 and again recently, bringing the burden on both the fuels by about Rs 10 per litre.Responding to a question on domestic fuel prices, Puri said, “There are 193 countries in the UN and only Japan has seen a lower rise in petroleum prices than India.”He said the total increase in petrol and diesel prices was limited to around Rs 7.60 and claimed that compared to the levels prevailing during the Russia-Ukraine conflict in 2022, fuel prices were not effectively increased.Puri also said that oil marketing companies are currently incurring losses of around Rs 1,000 crore per day, but the government has ensured that consumers are protected from the full impact of rising crude oil prices.
Fuel prices rise amid Middle East tensions
Fuel prices have risen sharply in recent weeks as geopolitical tensions in West Asia have disrupted global energy markets.Petrol and diesel prices have increased by about Rs 7.5 per liter since the Middle East crisis began, with several revisions announced in a short period.The hike has raised concerns about inflation, transportation costs and pressure on household budgets, while higher fuel prices have also hit logistics and supply chains.Industry experts have warned that OMC margins remain under pressure due to higher crude prices and weak rupee despite the recent revision in fuel prices.
Sonbhadra is emerging as a model district
During his visit, Puri also highlighted development initiatives in Sonbhadra and Uttar Pradesh.He said Sonbhadra has topped the Delta Ranking Program of the Government of India and is moving beyond its image as a backward district.He said, “Sonbhadra is coming out of the identity of backwardness and will soon be established as a model district.”Puri said the per capita income of the district has increased from Rs 43,000 in 2018 to around Rs 1.2 lakh at present.He also highlighted the economic growth of Uttar Pradesh, noting that the state’s gross state domestic product has increased from about Rs 13 lakh crore to about Rs 36 lakh crore in 2016-17.The Minister said that India’s economy has expanded significantly in the last 12 years and is moving rapidly towards becoming the third largest economy in the world.
