Petrol, diesel price reduction not feasible now: Hardeep Puri
New Delhi, July 2
Consumers expecting a reduction in petrol and diesel prices may have to wait longer, as Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Thursday said there is no justification for lowering retail fuel prices at this stage.
Addressing the issue of fuel pricing, Puri said petrol and diesel prices have remained largely stable despite significant fluctuations in global crude oil markets.
He noted that petrol prices have increased by only 5.58 per cent over the past four years, while diesel prices have risen by 6.23 per cent during the same period.
The minister said state-run oil marketing companies (OMCs) are still recovering cumulative under-recoveries of around Rs 2.18 lakh crore. He added that these companies also continue to hold fuel inventories purchased when international crude oil prices were much higher, making an immediate reduction in retail prices impractical.
"So the question of bringing fuel prices down is not legitimate at this point in time," Puri said.
Highlighting the government's handling of global energy market disruptions, Puri said India has successfully protected consumers from much of the volatility caused by international crude oil prices. Referring to the recent tensions around the Strait of Hormuz, he said the country managed the situation without any disruption in fuel availability.
"Not one retail outlet reported a dry-out," the minister said, adding that India's network of around 1.07 lakh fuel retail outlets continued to operate normally throughout the crisis. He credited the government with absorbing most of the shocks arising from fluctuations in crude oil markets.
Puri also outlined the government's long-term plans to strengthen the country's energy infrastructure. He said India's refining capacity is projected to increase to 309.5 million metric tonnes per annum (MMTPA) by 2030. Several refinery expansion and greenfield projects are currently under implementation, with some expected to be completed over the next two years, further enhancing the country's energy security and refining capabilities.
— IANS
Reader Comments
Actually, the minister makes a valid point about the ₹2.18 lakh crore under-recovery. These OMCs are still bleeding from the days when crude was $140+ per barrel. But a small reduction of ₹2-3 per litre would have been a huge relief for aam aadmi before the monsoon season.
Only 5.58% increase in 4 years? Tell that to my wallet! Petrol was ₹75 in 2020, now it's ₹105 in Mumbai. Basic maths doesn't add up. But yes, I appreciate that India didn't face fuel shortage during Strait of Hormuz crisis. That's real achievement. 🇮🇳
As an expat living in Bangalore, I find it interesting how fuel prices are such a hot topic here. Back home in the UK, we pay £1.50 per litre which is roughly ₹150. But then our wages are higher too. India's fuel pricing strategy seems to prioritize stability over volatility. Not perfect, but understandable.
What about the ₹10 per litre excise duty they added during COVID? That was supposed to be "temporary". Now they say cannot reduce because of under-recoveries. This is double taxation by another name. Common sense says if crude is down, retail should also come down. Stop making fool of people.
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