Petrol Diesel Price: Union Petroleum and Natural Gas Minister, Hardeep Singh Puri, recently mentioned the possibility of a reduction in petrol and diesel prices if international crude oil prices remain low for the next few months. He emphasized that a final decision has not been reached on this matter yet.
Key points from the press conference in New Delhi
During the Middle East conflict, state-owned oil companies faced significant losses amounting to Rs 74,781 crore due to selling petrol, diesel, and LPG below cost. Despite the drop in global crude oil prices, refineries are still processing oil purchased at higher prices two months ago. Petrol prices surged by 20% in developed nations during the West Asia crisis, while neighboring countries of India saw a 35% increase. In contrast, India experienced only a 5.58% rise in petrol prices from February to June, with no fuel shortages or pump closures.
Recent developments:
– Nayara Energy, a private fuel company, lowered petrol and diesel prices by Rs 5 and Rs 3 per liter, respectively, starting July 1. This marks a significant price adjustment following the decline in international crude oil prices.
– Notably, Nayara Energy had previously sold petrol and diesel at higher rates than state-owned companies in various regions. During the Middle East crisis, the company raised petrol prices by Rs 5 per liter and has now reversed that hike. State-owned oil firms did not increase prices during that period.
Oil price fluctuations:
Amid the Iran conflict, crude oil prices surpassed $120 per barrel. However, following the resolution of tensions between the US and Iran in late June, oil prices began to decline. Currently, global crude oil is trading around $67 per barrel, with Brent oil approaching $70 per barrel.
The Union Minister further stated that the government has largely protected Indian consumers from the effects of volatility in the international energy market. Even during that time, the supply of petrol and diesel continued uninterrupted across the country, he said, referring to the tension in the Strait of Hormuz area.
There was no shortage of fuel at any petrol pump in the country. He clarified that even during this crisis, about 1.07 lakh petrol pumps across the country were functioning smoothly. Union Minister Puri also said that the government itself bore most of the financial burden created by the fluctuation in crude oil prices in the global market, which did not put any additional burden on the common man.