Petroleum Minister Hardeep Singh Puri says petrol and diesel prices could be reviewed if global crude oil prices remain low for the next 2–3 months.
Key Highlights:
- Government hints at possible fuel price review if crude oil remains low for 2–3 months.
- Oil companies are still refining expensive crude purchased during the West Asia conflict.
- State-run oil marketing companies absorbed losses of ₹74,781 crore.
- Nayara Energy cut petrol prices by ₹5/litre and diesel by ₹3/litre from July 1.
- Minister says Nayara only reversed its earlier price hikes.
- Future fuel price revisions will depend on sustained stability in global oil markets.
New Delhi, July 2: Union Petroleum Minister Hardeep Singh Puri has indicated that petrol and diesel prices could be reviewed in the coming months if international crude oil prices continue to remain at lower levels.
Speaking to reporters, the minister explained that oil marketing companies are currently refining crude oil that was purchased nearly two months ago, when global prices had surged due to the West Asia conflict. As a result, the recent decline in crude prices has not yet translated into lower retail fuel prices.
Puri said that if crude oil prices remain stable for the next two to three months, the government and oil companies would be in a better position to consider reducing petrol and diesel prices. However, he clarified that such a scenario remains hypothetical at this stage.
The minister also revealed that state-run oil marketing companies incurred losses of around ₹74,781 crore by selling petrol, diesel, and LPG below cost during the period of elevated global crude prices.
Meanwhile, private fuel retailer Nayara Energy reduced petrol prices by ₹5 per litre and diesel prices by ₹3 per litre from July 1. Puri clarified that Nayara’s move mainly reversed the price increases it had implemented during the crude oil price spike, while public sector oil companies had largely kept retail prices unchanged during the same period.
Global crude oil prices had crossed $110 per barrel during the peak of the West Asia crisis before easing in the second half of June after geopolitical tensions subsided. Since Indian refiners typically procure crude oil several weeks in advance, the impact of lower international prices is expected to be reflected only after existing high-cost inventories are exhausted.
The government will continue to monitor international energy markets before taking any decision on retail fuel price revisions.
