Union Petroleum Minister Hardeep Singh Puri has indicated that petrol and diesel prices in India may ease soon as cheaper crude oil shipments reach refiners. While current stocks were purchased at higher rates, the arrival of lower-priced crude is expected to reduce retail fuel costs in the coming weeks.
Current Situation of Fuel Prices
Stable Retail Prices: Despite global volatility, Puri emphasized that petrol and diesel prices have not effectively risen in India compared to levels during the Russia-Ukraine conflict in 2022.
Government Intervention: The Centre has cut excise duties multiple times (Nov 2021, May 2022, and recently in 2026), absorbing about ₹10 per litre on both fuels to shield consumers.
OMC Losses: Oil Marketing Companies (OMCs) are currently incurring losses of around ₹1,000 crore per day by holding prices steady despite higher crude costs.
Why Prices May Ease
Cheaper Crude Arrivals: OMCs are still processing crude bought at higher prices. Once new shipments of lower-priced crude are refined, retail prices could decline.
Global Market Trends: Recent softening of crude prices, following geopolitical tensions in West Asia and the Strait of Hormuz, has created room for potential reductions.
Comparative Advantage: Puri noted that among 193 UN countries, only Japan has seen a lower increase in petroleum prices than India, highlighting India’s relative stability.
Impact on Consumers
Inflation Relief: Lower fuel prices would ease pressure on transportation costs, household budgets, and logistics chains, which have been strained by recent hikes.
Limited Past Increase: The cumulative rise in petrol and diesel prices has been restricted to about ₹7.60 per litre since the Middle East crisis began, far less than global averages.
Short-Term Outlook: Consumers may not see immediate cuts, as OMCs must first exhaust existing high-cost inventories before passing on benefits
