Consumers hoping for a quick drop in petrol and diesel prices may face a delay, as Union Petroleum and Natural Gas Minister Hardeep Singh Puri stated that there is currently no valid reason to cut retail fuel prices. Despite fluctuations in global crude oil markets, petrol and diesel prices have remained relatively steady. Over the past four years, petrol prices have only gone up by 5.58%, while diesel prices have increased by 6.23% during the same period.
State-run oil marketing companies (OMCs) are still recovering around Rs 2.18 lakh crore in cumulative under-recoveries, as mentioned by the minister. These companies are also holding fuel inventories purchased at higher international crude oil prices, making an immediate reduction in retail prices unfeasible. Puri emphasized that lowering fuel prices is not warranted at this time.
Puri highlighted India’s effective management of global energy market disruptions, noting that the country shielded consumers from much of the volatility linked to international crude oil prices. Despite recent tensions in the Strait of Hormuz, India ensured uninterrupted fuel availability. During the crisis, all of India’s approximately 1.07 lakh fuel retail outlets operated normally without any shortages, according to the minister. The government absorbed most of the impacts from crude oil market fluctuations.
The minister also outlined the government’s long-term strategies to bolster the nation’s energy infrastructure. By 2030, India’s refining capacity is expected to reach 309.5 million metric tonnes per annum (MMTPA). Various refinery expansion and greenfield projects are underway, with some slated for completion in the next two years. These initiatives aim to enhance India’s energy security and refining capabilities.
