Union Petroleum and Natural Gas Minister Hardeep Singh Puri said there had been no increase in petrol and diesel prices in real terms, asserting that the government had absorbed much of the impact of global crude oil volatility and hinting at a possible reduction in fuel prices if lower-priced crude reaches refiners.
Puri said Prime Minister Narendra Modi had cut central excise duty in November 2021, May 2022 and again recently, with the government bearing a burden of around ₹10 per litre each on petrol and diesel.
Replying to a question on whether domestic fuel prices would be reduced following the decline in international crude oil prices, Puri said, "There are 193 countries in the United Nations and only Japan has seen a lower increase in petroleum prices than India."
The petroleum minister said the cumulative increase in petrol and diesel prices had been limited to ₹7.60 and added that compared with prices prevailing during the Russia-Ukraine conflict that began in 2022, "there has actually been no increase."
Referring to tensions surrounding the Strait of Hormuz, Puri said oil marketing companies were incurring losses of about ₹1,000 crore per day, but the government had ensured that consumers were protected from the impact.
"If compared with 2022 prices, the rates are actually lower," he said.
Puri said oil companies were currently holding inventories of crude bought at higher prices and that fuel prices could soften once lower-priced crude reached refineries.
