Petroleum and natural gas minister hints at impending fuel price hike

Global crude oil prices have surged drastically due to the US-Iran war, but state-run oil marketing companies have so far held regular petrol and diesel prices steady. That, however, has led to heavy losses for these firms. "Oil companies are losing Rs 1,000 crore every day. Losses are Rs 1 lakh crore if you look at the quarter. In that context, how long can you keep it like this?" Minister of Petroleum and Natural Gas Hardeep Singh Puri said at a business summit on Tuesday. 

1. Crude oil prices have gone up from 65 dollars to 115 dollars: Puri
2. India is the world's third-largest oil importer and consumer
3. Rumours of fuel shortage spiked consumption by 6 percent

When asked how long oil firms could continue taking these losses, Puri added, “Frankly, that is something that worries me. At some stage, the government will have to take a view on that."

Price hike not related to elections

Puri also dismissed rumours that any fuel price revision would be linked to elections. "Somebody said elections are over, now fuel prices will suddenly go up. How many elections have there been in the last four years? The last time prices were raised was in 2022. Since then, there have been general elections and several state elections," he said. “It is not my case that prices will never go up. I am saying the two are unrelated,” he added.

Fear-mongering increasing fuel consumption

India's fuel demand jumped 6 percent amid rumours of shortages during the US-Iran war, he added. Puri said there was no shortage, adding, "Every [fuel station] has had petrol and diesel." He also stated India expanded crude oil sourcing from 27 countries in 2006-07 to 41 today in order to ensure uninterrupted supplies from routes unimpacted by the geopolitical situation.

At the same time, he also made it clear that India has an adequate stock of LNG and LPG, and that fuel supplies across the country remained uninterrupted despite the ongoing crisis.