New Delhi, July 2: Consumers hoping for relief in petrol and diesel prices may have to wait longer. Union Minister for Petroleum and Natural Gas Hardeep Singh Puri stated on Thursday that there is no justification for reducing retail fuel prices under the current circumstances.
Responding to queries about fuel prices, Puri noted that despite significant fluctuations in global crude oil prices, petrol and diesel prices in India have remained relatively stable. He highlighted that over the past four years, petrol prices have increased by only 5.58% and diesel prices by 6.23%.
The minister explained that government oil marketing companies (OMCs) are still recovering from a cumulative under-recovery of approximately ₹2.18 lakh crore. Additionally, these companies have stocks of fuel purchased when international crude oil prices were much higher, making it impractical to lower retail prices at this time.
Puri remarked, “Therefore, the question of reducing fuel prices is not valid at this moment.” He further stated that the government has largely shielded Indian consumers from the impacts of fluctuations in the international energy market. He referenced recent tensions in the Strait of Hormuz, noting that fuel supply was not disrupted anywhere in the country during that period.
He assured that no petrol pump in the country faced a dry-out situation. According to the minister, approximately 1.07 lakh petrol pumps across the nation continued to operate normally throughout the crisis. He emphasized that the government has absorbed most of the shocks caused by fluctuations in global crude oil prices, preventing additional burdens on the public.
Puri also mentioned that the government is continuously working to strengthen the country’s energy infrastructure, with a target to increase India’s refining capacity to 309.5 million metric tons per annum (MMTPA) by 2030. He noted that several refinery expansion projects and new greenfield refineries are being developed, with some expected to be completed within the next two years, enhancing both the country’s energy security and refining capacity.
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