A decrease in worldwide crude oil prices may not promptly lead to a drop in petrol and diesel costs in India, as stated by Minister of State for Petroleum & Natural Gas and Tourism, Suresh Gopi. Gopi explained that various factors impact the pricing of domestic fuel, such as the time taken for cheaper crude oil to be shipped to India.
He emphasized that the recent rise in fuel prices cannot be reversed immediately just because international crude prices have softened. Gopi highlighted that the transportation of cheaper crude to India through the Strait of Hormuz, which experiences high ship traffic, requires normalization.
Gopi noted that oil marketing companies (OMCs) faced significant challenges due to the volatility in global energy markets following the West Asia conflict earlier this year. The government, according to him, bore a substantial portion of the burden resulting from higher crude prices to mitigate the impact on consumers.
He mentioned that fuel pricing is influenced by various market and logistical factors, not solely by changes in international crude oil benchmarks. Recent data showed a decline in crude oil prices, with the Brent crude trading lower at around $78 per barrel and US West Texas Intermediate (WTI) crude falling to about $75 per barrel.
