Union Petroleum and Natural Gas Minister Hardeep Singh Puri has said that any reduction in petrol and diesel prices will depend on when lower-priced crude oil purchased by India reaches domestic refineries, indicating that consumers should not expect an immediate cut in retail fuel rates. He explained that Indian oil marketing companies procure crude oil through contracts and shipments that take time to arrive and be processed before the benefit of lower international crude prices can be reflected at fuel stations. According to the minister, retail fuel pricing is influenced by multiple factors, including procurement costs, refining, transportation, taxes and market conditions, rather than day-to-day fluctuations in global crude prices. He noted that while international oil prices have softened in recent weeks, the impact on domestic fuel prices is subject to the inventory cycle and the timing of deliveries. Puri also reiterated that India continues to diversify its sources of crude oil to ensure energy security and secure supplies at competitive prices amid ongoing global geopolitical uncertainties. Industry experts said the delay between changes in global crude prices and retail fuel rates is common, as refiners and oil marketing companies typically process previously purchased cargoes before passing on any cost advantage to consumers. The minister’s remarks come as households and businesses closely monitor fuel prices, with any reduction expected to provide relief from transportation costs and support overall inflation management. Market participants will continue to watch global crude price trends and domestic pricing decisions in the coming weeks for indications of any revision in petrol and diesel rates.
Fuel Prices to Ease Only After Lower-Cost Crude Reaches Indian Refineries, Says Hardeep Puri
