Union Petroleum and Natural Gas minister Hardeep Singh Puri has said fuel prices are expected to ease in the coming months despite recent increases in petrol and diesel rates. Speaking to CNN-News18, Puri said oil prices are unlikely to remain at current levels for an extended period and are expected to moderate in the months ahead. However, he cautioned that the situation could become a concern if tensions in the Gulf region spread further.
- Petrol prices have risen by about 7.8 percent since mid-May
- Diesel prices are up by roughly 8.6 percent over the same period
- Oil minister expects crude oil prices to moderate in the coming months
Fuel prices have risen in recent weeks
Petrol and diesel prices were first raised on May 15, with further revisions announced through late May. Combined, the four hikes since mid-May have increased both petrol and diesel prices by more than Rs 7 per litre. Petrol prices are currently about 7.8 percent higher than before the revisions, while diesel prices have risen by 8.6 percent.
The increases follow supply disruptions caused by the conflict involving Iran, which has affected shipments through the Strait of Hormuz, one of the world's most important energy trade routes. Before the conflict, roughly one-fifth of global oil and gas supplies passed through the corridor.
India has reserves for 76-80 days
Puri said India currently has enough oil and gas reserves to last between 76 and 80 days. He also said the country expects suppliers from the United States, Canada and other Western Hemisphere nations to help offset any supply shortages.
Global crude oil prices have risen sharply in recent months, reaching close to USD 100 per barrel following disruptions to shipping routes in the Gulf region. India imports a large share of its crude oil requirements, making domestic fuel prices sensitive to changes in global crude markets.