Fuel Price Rise Limited Despite Global Oil Volatility: Hardeep Puri

Union Petroleum and Natural Gas Minister Hardeep Singh Puri said the rise in petrol and diesel prices in India has remained contained despite sharp fluctuations in global crude oil markets, according to news agency PTI.

Addressing a press conference in Sonbhadra during an outreach programme marking 12 years of the Government of India under Narendra Modi, Puri stated, "If we look at the situation in real terms, there has been no increase in petrol and diesel prices in the country."

Also read: NCRPB Highway Safety Plan Proposes Mandatory Service Lanes, Trauma Care, Heli-Ambulances in NCR

He said the Centre had reduced excise duty on three occasions -- November 2021, May 2022 and more recently -- absorbing a burden of around ₹10 per litre on both fuels.

Responding to a query on whether domestic fuel prices could be lowered in line with softer global crude rates, 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 increase in fuel prices had been restricted to ₹7.60 and noted that compared to levels during the Russia-Ukraine conflict in 2022, "there has actually been no increase."

Referring to geopolitical tensions around the Strait of Hormuz, the minister said oil marketing companies were currently incurring losses of about ₹1,000 crore per day, but the government had ensured that these costs were not passed on to consumers. "If compared with 2022 prices, the rates are actually lower," he said.

Puri indicated that fuel prices could ease once lower-cost crude oil reaches refiners, noting that companies are still processing inventory acquired at higher 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.