India's fuel supply management has been exemplary: Former IGL Chairman
Mumbai, May 23
India's fuel supply management has remained stable despite global disruptions, said former Chairman of Indraprastha Gas Limited and former Director of Bharat Petroleum Corporation Limited Raj Kumar Dubey on Saturday.
Speaking with IANS, Dubey said, "Supply management has been exemplary, otherwise you would have faced shortages like several other countries. But India never faced any shortages in terms of fuel, petrol and diesel. LPG is an area of concern."
Referring to the financial impact of global crude price movements, he said the projected under-recovery is around Rs 30,000 crore per month.
"Crude prices have risen 35 to 40 per cent and may increase further. Naturally, this has to reflect in petroleum products. Across the world, most countries have raised prices ranging from 20 per cent to 50 per cent, so it is up to policymakers to decide the extent of increase required," he said.
He added that many countries have already adjusted fuel prices.
"The government has done an exemplary job in this situation because it was initially seen as a temporary phenomenon. Whenever such temporary spikes happen, we don't want ordinary people to be affected," he told IANS.
Comparing international trends, Dubey noted that even in the United States, the largest producer of crude oil, petrol and diesel prices have gone up.
Since more than 85 per cent of India's crude is imported, he said India has done a "wonderful job" in managing the situation.
Earlier in May, leading state-run oil marketing companies (OMCs) - HPCL, IOCL and BPCL - had assured customers that petrol, diesel and LPG supplies remain stable across the country, while urging people not to rely on rumours or unverified social media messages regarding fuel shortages.
— IANS
Reader Comments
I appreciate the stable supply but still worried about LPG prices. My mother's cylinder has gone up by ₹200 in last year alone. Middle class families are struggling with monthly budgets. Hope the government thinks about common people more than just saying "stable supply." 😊
As an expat living in Mumbai, I can confirm the fuel availability is seamless. I just returned from a trip to the UK where petrol was £1.80/L (₹180/L). Here it's still ₹105/L. India is doing very well compared to European countries. The comparison with US is interesting since they are a producer.
Sir, please also mention that excise duty is still very high. Before 2020, petrol was ₹70/L, now it's ₹105/L even after world crude has fallen from $130 to $75. The government reduced excise by ₹8 but that's nothing. We are taxed more than many countries. Stable supply is good but affordability is key for aam aadmi. 🙏
My uncle works in BPCL and he says the supply chain during pandemic was absolutely heroic. Truck drivers worked non-stop, depots ran 24/7. We should also credit the workers, not just management. Dubey ji is right but let's also remember the people who actually make it happen on ground. 👏
Interesting perspective from a former PSU chairman. Having worked in oil & gas myself, India's strategic petroleum reserves (SPR) are too small - only 9 days. We should have at least 90 days like IEA countries. In a real crisis, stable supply depends
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