People waiting for petrol and diesel prices to decrease have received a response from the government. Union Minister Hardeep Singh Puri has said that as soon as refineries start getting cheaper oil, petrol and diesel prices may come down.
New Delhi: After the drop in crude oil prices, people in India are now eyeing cheaper petrol and diesel. The government has given its answer on when petrol and diesel prices will be reduced in the country. Following the deal between the US and Iran, crude oil prices fell. However, after Israel's attack, prices have seen a rise again.
Union Petroleum and Natural Gas Minister Hardeep Singh Puri indicated on Saturday that if recently purchased crude oil at lower prices reaches Indian refineries, petrol and diesel prices could be cut. At the same time, he claimed that despite huge volatility in global oil markets, domestic fuel prices have seen very limited increases.
Union Minister said - it will take some time
Addressing a press conference in Sonbhadra district of Uttar Pradesh, Puri said that oil marketing companies (OMCs) are currently processing crude oil purchased at higher prices. The benefit of the drop in crude oil prices in the international market will take some time to reflect in retail prices.
He said that companies currently have crude oil stocks purchased at high prices. When crude bought at lower prices reaches them, fuel prices are likely to decrease.
Explanation on fuel prices
The Union Minister said that despite disruptions in global energy markets and geopolitical tensions, especially around the Strait of Hormuz, fuel prices in India have remained relatively stable. Puri said, 'If we look at the actual situation, there has been no increase (in proportion) in petrol and diesel prices in the country.'
Prices had increased due to West Asia tension
- Fuel prices have risen sharply over the past few weeks as geopolitical tensions in West Asia (Middle East) have impacted global energy markets.
- Since the start of the Middle East crisis, petrol and diesel prices have increased by about Rs 7.5 per litre, and prices have been changed multiple times in a very short period.
- This increase has raised concerns about inflation, transportation costs, and pressure on household budgets. High fuel prices have also affected logistics and supply chains.
Will prices increase again?
Israel has refused to accept the agreement between the US and Iran. Israel is now attacking Iran. The Iran-US agreement states that the US will pressure Israel not to attack. But Israel has refused to abide by this agreement. In such a situation, Iran has closed Hormuz again. Crude oil prices could rise again under these circumstances. If this happens, India may have to wait longer for cheaper petrol and diesel.
