Will petrol and diesel become cheaper? Government rules it out
Following the easing of US-Iran tensions and the resumption of operations in the Strait of Hormuz, global crude oil prices have witnessed fluctuations; consequently, people were hoping for some relief in petrol and diesel prices. However, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri has clarified that, given the current situation, there is no concrete reason to reduce fuel prices.
Addressing the issue of petrol and diesel prices, Hardeep Puri stated that despite significant volatility in global crude oil prices, fuel prices in India have remained largely stable. He noted that over the last four years, petrol prices have risen by only 5.58 percent and diesel prices by 6.23 percent.
‘No immediate reduction in petrol and diesel prices’
The Union Minister stated that state-run Oil Marketing Companies (OMCs) are still recovering from cumulative under-recoveries (losses) amounting to approximately ₹2.18 lakh crore. Furthermore, these companies still hold stocks of fuel purchased when international crude oil prices were significantly higher. Under these circumstances, cutting petrol and diesel prices at this moment is not practical.
What did the Union Petroleum Minister say?
Puri said, “Therefore, the question of reducing fuel prices at this time is not justified.” The Union Minister added that the government had largely shielded Indian consumers from the impact of volatility in the international energy market. Referring to the recent tensions around the Strait of Hormuz, he noted that petrol and diesel supplies across the country remained uninterrupted throughout that period.
He stated that no petrol pump in the country faced a fuel “dry-out” situation. According to the Minister, the approximately 1.07 lakh petrol pumps across the country continued to operate normally throughout the crisis. He added that the government absorbed most of the shocks caused by fluctuations in global crude oil prices, thereby preventing any additional burden on the common people.
Government Focused on Strengthening Energy Infrastructure – Puri
Puri stated that the government is continuously working to further strengthen the country’s energy infrastructure. He noted that the target is to increase India’s refining capacity to 309.5 million metric tonnes per annum by 2030. He mentioned that several refinery expansion projects and new greenfield refineries are being developed to this end; some of these projects are expected to be completed within the next two years, thereby bolstering both the nation’s energy security and its refining capacity.
