Union Petroleum and Natural Gas Minister Hardeep Singh Puri has indicated that fuel prices in India may soften in the coming months, despite the recent rise in petrol and diesel rates triggered by global supply concerns and higher crude oil prices.
Puri said current oil prices are unlikely to remain elevated indefinitely and expressed confidence that crude markets could stabilise over time. However, he also cautioned that any further escalation of geopolitical tensions in the Gulf region could continue to exert pressure on global energy markets.
The minister’s comments come after a series of fuel price revisions since mid-May. Petrol and diesel prices have been increased multiple times over recent weeks, resulting in cumulative hikes of more than Rs 7 per litre. Compared to levels seen before the revisions began, petrol prices are now nearly 8 percent higher, while diesel prices have risen by more than 8.5 percent.
The recent increase has been linked to disruptions in global energy supply chains following the conflict involving Iran. Shipping movements through the Strait of Hormuz, a critical route for international oil and gas trade, have been affected, raising concerns over supply availability and pushing crude prices upward.
Global benchmark crude oil prices have climbed sharply in recent months, approaching the USD 100-per-barrel mark amid uncertainty surrounding Gulf shipping routes. As India imports the majority of its crude oil requirements, domestic fuel prices remain closely tied to developments in international energy markets.
Addressing concerns over energy security, Puri said India currently has strategic and commercial reserves sufficient to meet demand for approximately 76 to 80 days. He also noted that alternative supply sources, including producers in the United States, Canada and other countries in the Western Hemisphere, could help offset any disruptions from traditional supply routes.
While the minister’s outlook suggests the possibility of lower fuel prices if crude markets stabilise, future price movements will continue to depend on global geopolitical developments, crude oil trends and the availability of alternative energy supplies.
