No Plans to Cut Petrol, Diesel Prices Ahead of Lok Sabha Polls: Hardeep Singh Puri
New Delhi: Ahead of Lok Sabha polls this year, the probability of a cut in prices of petrol and diesel has been ruled out by the government as Union petroleum minister Hardeep Singh Puri on Wednesday clarified that there’s no proposal to cut fuel prices, while the media reports are ‘speculative’. The statement by the oil minister comes amid several media reports stating that the government plans to announce cuts on prices of diesel and petrol in the country soon.
“No discussion with oil marketing companies (OMCs) on the fuel price cuts… we want a stable and positive forward looking situation in terms of pricing. But given the high volatility of oil prices globally, any price cut on fuel is difficult for the government, and hence there have been no talks with OMCs on price reduction at the moment,” explained Puri while briefing the media here.
Despite the correction in crude oil prices, Indian fuel retailers have left retail prices of fuel unchanged since April 2022. Typically, state-owned OMCs such as Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) revise retail prices of petrol and diesel daily based on the rolling average of international benchmark prices over the past 15 days.
Explaining the fuel price dynamics in the country, Puri also said that India is the only country in the world where fuel prices were cut. If you think that prices will rise in future, then pray to God that there’s no turbulence and things are normal. In South Asian countries, the prices of petrol and diesel increased by around 40-80 per cent, but here (India) prices have come down, We are able to do it because of far-sighted and visionary leadership,” he said, adding that the central excise duty reduction was done on two occasions, November 2021, and May 2022 and we carried that into 2023.
While speaking about gas prices and supply amid the attacks on merchant ships in the Red Sea, Puri also said, "I see overall price is also not going up. The gas prices would be affected if crude supply gets impacted. If there’s a major disruption in the supply route... 6 to 8 to 12 percent barrels transit through this route (Red Sea)…keep your fingers crossed,” Puri said.
The minister further said that India has diversified its sources of supply of crude oil. “Our primary responsibility is to ensure that there’s availability and affordability. And that availability does not come at a slightly enhanced price. "The price of crude has gone up to 80+, but they have now come down, but in a highly volatile situation, our primary responsibility is to ensure availability and affordability,” he added.
