India’s fuel pricing outlook may see changes in the near future, as Hardeep Singh Puri indicated that sustained pressure on oil marketing companies could prompt a review of petrol and diesel prices.
Speaking at a recent business summit, the petroleum and natural gas minister highlighted the sharp rise in global crude oil prices, which have climbed from around $65 per barrel to approximately $115. The surge, driven by geopolitical tensions including the ongoing US-Iran conflict, has significantly increased input costs for Indian oil companies.
Despite the rise in crude prices, retail fuel rates in India have remained largely unchanged over the past four years. According to Puri, this has resulted in substantial financial strain on state-run oil marketing firms. He noted that these companies are currently incurring losses of around Rs 1,000 crore per day, with quarterly losses estimated at nearly Rs 1 lakh crore.
India, the world’s third-largest importer and consumer of crude oil, remains particularly sensitive to fluctuations in global energy markets. The minister acknowledged concerns about how long such losses can be sustained, stating that the government may need to take a decision if the situation persists.
Addressing speculation around the timing of any potential price revision, Puri clarified that fuel pricing decisions are not linked to electoral cycles. He pointed out that prices have not been revised since 2022 despite multiple national and state elections during this period.
The minister also addressed concerns around fuel availability, which recently led to a spike in demand. Amid rumours of shortages linked to the geopolitical situation, fuel consumption rose by about 6 percent. However, Puri dismissed these concerns, stating that there has been no disruption in supply and that fuel stations across the country continue to operate normally.
To strengthen supply security, India has diversified its crude sourcing network over the years, expanding from 27 supplier countries in 2006-07 to 41 at present. This broader sourcing strategy is aimed at reducing dependence on any single region and ensuring continuity in supply even during global disruptions.
Additionally, the government has maintained that reserves of LNG and LPG remain adequate, and there has been no interruption in fuel availability across the country.
While no immediate price revision has been announced, the current market conditions suggest that a reassessment of fuel prices may be considered if global crude trends continue to exert pressure on domestic oil companies.