Blurb: The government said petrol and diesel prices will remain unchanged despite global oil fluctuations due to financial constraints.
New Delhi
Consumers hoping for an immediate reduction in petrol and diesel prices may have to wait longer, as Union Petroleum and Natural Gas Minister Hardeep Singh Puri clarified on Thursday that current economic conditions do not justify lowering retail fuel prices.
The minister said state-run oil marketing companies are still recovering substantial financial losses and managing inventories purchased when international crude oil prices were significantly higher.
Speaking on the issue of fuel pricing, Puri stated that retail petrol and diesel prices in India have remained relatively stable despite considerable volatility in global crude oil markets over the past several years. According to the minister, petrol prices have increased by only 5.58 percent during the last four years, while diesel prices have risen by 6.23 percent over the same period, reflecting the government’s efforts to shield consumers from international price shocks.
The minister explained that public sector oil marketing companies continue to recover cumulative under-recoveries amounting to approximately Rs 2.18 lakh crore. In addition, these companies are still holding fuel stocks that were procured when global crude oil prices were much higher than current levels. These financial pressures, he said, make an immediate reduction in retail fuel prices economically impractical.
Puri emphasized that under the present circumstances, demands for a cut in petrol and diesel prices are not justified. He maintained that the government’s priority has been to ensure uninterrupted fuel availability while minimizing the impact of international market volatility on domestic consumers.
Highlighting India’s response to recent geopolitical developments, the minister referred to tensions surrounding the Strait of Hormuz, a strategically important shipping route for global oil supplies. He said the country successfully managed the situation without any disruption in fuel distribution or shortages across the nation.
According to Puri, none of India’s approximately 1.07 lakh fuel retail outlets reported running out of fuel during the period of heightened global uncertainty. He credited the government’s proactive planning and efficient supply chain management for maintaining uninterrupted fuel availability despite challenges in international energy markets.
The minister further stated that India has absorbed a substantial portion of the fluctuations in global crude oil prices instead of passing the full burden on to consumers. He said this approach has helped maintain relative price stability while ensuring that essential fuel supplies continue without interruption across the country.
Looking beyond immediate pricing concerns, Puri outlined the government’s long-term strategy to strengthen India’s energy infrastructure and enhance energy security. He announced that the country’s refining capacity is expected to reach 309.5 million metric tonnes per annum by 2030 through a combination of refinery expansion projects and new greenfield facilities.
