A recent decline in international crude oil prices is unlikely to bring immediate relief to Indian consumers at fuel stations, according to Union Petroleum and Natural Gas Minister Hardeep Singh Puri.
The minister explained that state-run oil marketing companies (OMCs) are currently refining crude oil that was purchased when global prices surged during the West Asia conflict. Since refiners are still using these higher-cost supplies, the benefits of the recent fall in crude prices are yet to be reflected in retail petrol and diesel rates.
Puri revealed that public sector OMCs have collectively incurred losses of ₹74,781 crore after selling petrol, diesel and LPG below cost during the period of elevated crude prices. He noted that the companies first need to absorb these losses before lower international prices can influence domestic fuel rates.
According to the minister, fuel prices are determined by several factors, including the cost of crude oil procurement, refining expenses, taxes, transportation costs and market conditions. As a result, changes in global crude prices usually take time to affect retail fuel prices.
Industry experts say that if international crude prices remain stable at lower levels for an extended period, oil marketing companies may eventually pass on the benefit to consumers. However, any decision on reducing petrol and diesel prices will depend on future global market trends and the financial position of the OMCs.
The government has reiterated that it is closely monitoring developments in the global energy market and remains committed to ensuring uninterrupted fuel supplies while maintaining price stability for consumers.
