New Delhi, June 18: The Minister of Petroleum and Natural Gas, Suresh Gopi, stated on Thursday that a decline in global crude oil prices does not guarantee an immediate reduction in petrol and diesel prices in India.
In a conversation with reporters, Gopi explained that multiple factors influence domestic fuel pricing. This includes the time taken for crude oil purchased at lower prices to reach India.
He emphasized that the recent increase in fuel prices cannot be swiftly reversed simply because international crude oil prices have softened.
“It will take time for cheaper crude oil to arrive in India via the Hormuz Strait, where shipping traffic remains high. Normalizing the situation will require time,” Gopi noted.
He also pointed out that the instability in the global energy market, following conflicts in West Asia this year, has significantly impacted government oil marketing companies (OMCs).
To shield consumers from rising crude oil prices, the government has absorbed a substantial portion of the additional burden.
“The government has incurred a loss of ₹12,000 crores due to this absorption. No state government has reduced taxes during high fuel prices to forgo revenue. The central government must manage the country while ensuring oil companies remain viable,” he added.
The minister clarified that petrol and diesel prices do not solely depend on international crude oil rates but also consider various market and transportation factors.
On Thursday, international crude oil prices saw a decline, with Brent crude falling approximately 1.64% to around $78 per barrel. Meanwhile, the price of U.S. West Texas Intermediate (WTI) crude dropped nearly 2% to about $75 per barrel.
This decrease in crude oil prices follows diplomatic progress aimed at reducing tensions in West Asia. Investors are hopeful that stabilizing conditions in the region will alleviate pressure on global energy supplies.
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