Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Thursday indicated that petrol and diesel prices in India could be reduced if global crude oil prices continue to remain low for the next few weeks.
Speaking on the recent decline in international oil prices, Puri said the government and oil marketing companies are closely monitoring the trend before taking any decision on retail fuel prices.
Explaining why consumers have not yet seen a reduction in petrol and diesel prices despite softer crude rates, the minister said state-run oil marketing companies had incurred losses when crude prices surged during the West Asia conflict. These companies are currently selling fuel refined from crude that was purchased at significantly higher prices, delaying any immediate benefit to consumers.
Puri also said India is using the current period of lower crude prices to strengthen its strategic petroleum reserves and enhance the country's energy security. Building up oil reserves when prices are favourable, he said, is a key part of India's long-term energy strategy.
The minister stressed that if international crude prices remain stable at current levels over the coming weeks, oil marketing companies will be in a better position to consider reducing petrol and diesel prices.
His remarks come a day after private fuel retailer Nayara Energy reduced petrol prices by ₹5 per litre and diesel prices by ₹3 per litre across its retail outlets, marking the first fuel price cut by a retailer in more than two years. However, state-run fuel retailers, which account for the majority of fuel sales in the country, have so far kept pump prices unchanged.
Global crude oil prices have eased in recent days following improving geopolitical conditions and signs of stability in the energy market, raising hopes that Indian consumers could also see relief if the trend continues.
