New Delhi, July 2: Consumers hoping for a reduction in petrol and diesel prices may have to wait longer. Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, stated on Thursday that there is currently no justification for lowering retail fuel prices given the existing circumstances.
In response to fuel prices, Puri noted that despite significant fluctuations in global crude oil prices, petrol and diesel prices in India have remained relatively stable. He highlighted that in the past four years, petrol prices have increased by only 5.58% and diesel prices by 6.23%.
The minister explained that state-owned oil marketing companies (OMCs) are still recovering from a cumulative under-recovery of approximately ₹2.18 lakh crore. Additionally, these companies still hold stocks of fuel purchased when international crude oil prices were much higher. Thus, reducing retail prices of petrol and diesel is not practical at this time.
Puri remarked, “Therefore, the question of reducing fuel prices is not valid at this moment.” He further stated that the government has largely insulated Indian consumers from fluctuations in the international energy market. He referenced recent tensions around the Strait of Hormuz, noting that fuel supply was not disrupted anywhere in the country during that period.
He added, “There was no situation of fuel running out at any petrol pump in the country.” According to the minister, approximately 1.07 lakh petrol pumps across the nation continued to operate normally throughout the crisis. He emphasized that the government absorbed most of the shocks from the fluctuations in global crude oil prices, preventing any additional burden on the public.
Puri also mentioned that the government is continuously working to strengthen the country’s energy infrastructure. He indicated that by 2030, India’s refining capacity is expected to reach 309.5 million metric tons per annum (MMTPA).
He noted that several refinery expansion projects and new greenfield refineries are being developed, with some expected to be completed in the next two years, enhancing both the country’s energy security and refining capacity.
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