Consumers expecting a reduction in petrol and diesel prices may have to wait longer, as Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Thursday said there is no justification for lowering retail fuel prices at this stage. Addressing the issue of fuel pricing, Puri said petrol and diesel prices have remained largely stable despite significant fluctuations in global crude oil markets.
He noted that petrol prices have increased by only 5.58 per cent over the past four years, while diesel prices have risen by 6.23 per cent during the same period. The minister said state-run oil marketing companies (OMCs) are still recovering cumulative under-recoveries of around Rs 2.18 lakh crore.
He added that these companies also continue to hold fuel inventories purchased when international crude oil prices were much higher, making an immediate reduction in retail prices impractical. "So the question of bringing fuel prices down is not legitimate at this point in time," Puri said.
Highlighting the government's handling of global energy market disruptions, Puri said India has successfully protected consumers from much of the volatility caused by international crude oil prices. Referring to the recent tensions around the Strait of Hormuz, he said the country managed the situation without any disruption in fuel availability.
"Not one retail outlet reported a dry-out," the minister said, adding that India's network of around 1.07 lakh fuel retail outlets continued to operate normally throughout the crisis. He credited the government with absorbing most of the shocks arising from fluctuations in crude oil markets.
Puri also outlined the government's long-term plans to strengthen the country's energy infrastructure. He said India's refining capacity is projected to increase to 309.5 million metric tonnes per annum (MMTPA) by 2030. Several refinery expansion and greenfield projects are currently under implementation, with some expected to be completed over the next two years, further enhancing the country's energy security and refining capabilities.