New Delhi, Union Minister of Petroleum and Natural Gas, Hardeep Singh Puri, dismissed speculations of fuel price cuts, emphasizing that ensuring energy availability remains the government’s priority amid volatile crude oil prices. Brent crude prices, currently around $75 per barrel, have witnessed a significant drop due to concerns about demand.
“We are in a very turbulent situation right now with high volatility in crude prices. There has been no discussion with the oil marketing companies (OMCs) on price cuts,” stated Puri.
Despite media reports suggesting a possible reduction in diesel and petrol prices, Indian fuel retailers have maintained unchanged retail prices since April 2022. Oil marketing companies, including Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL), typically revise fuel prices daily based on the rolling average of international benchmark prices over the past 15 days.
OMCs faced challenges during the price freeze in 2022-23, leading to reduced margins and reported losses. While recent quarters have seen these companies returning to profitability, they have refrained from adjusting prices despite a softening in crude oil costs to offset earlier losses.
Puri acknowledged that OMCs had posted profits in recent quarters, citing the example of IOC reporting a consolidated net profit of Rs 12,967 crore in the second quarter. However, he highlighted the substantial losses incurred when oil prices had soared.
The government’s stance on prioritizing energy stability aligns with global concerns about the economic impact of fluctuating crude oil prices.
