India’s Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, has defended the global oil market’s turbulent state, stating that it needs to stabilize before any price reductions. Puri stated that the oil companies make their own decisions on fuel pricing.
After suggestions that petrol and diesel prices may be lowered in the coming days, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri stated the global oil market is “highly turbulent” and must stabilize before any cuts.
When asked about fuel price reduction talks with oil corporations, the Union Minister said “there has been no discussion with the oil marketing companies on any such issue”. Puri added that oil firms set fuel prices.
“It’s quite turbulent. Two regions on Earth are in conflict “The Russia-Ukraine war and the Israel-Hamas conflict have led to Red Sea cargo ship attacks.
Petrol, fuel prices steady for record 21 months despite rate changes
Three state-owned gasoline retailers—IOCL, BPCL, and HPCL—control 90% of the market and have frozen petrol and diesel prices for a record 21 months.
This is despite rising crude oil prices last year, which caused huge losses in the first half of the 2022-23 fiscal year until dropping rates brought them back to profitability in the last three quarters.
The Red Sea and Suez Canal carry 12% of global marine traffic, 18% of oil, and 4-8% of LNG, according to the Union Minister.
“God forbid, if there is a further challenge or there is a disruption, you see an impact,” said he.
The Red Sea attack on ships boosted oil prices. Recent days have seen lower rates.
“In a highly volatile situation, our primary responsibility is to ensure availability and affordability,” Puri. “We are navigating this very carefully.” He stated energy firms don’t request price increases from the government.
“Pray to god that there is no turbulence, things are normal,” he said.
At present pricing, oil companies are making some money on gasoline and diesel, the most consumed fuel accounting for approximately 40% of all petroleum products in the country, but it has been “touch-and-go” in recent weeks.
Diesel makes or loses money on various days. The trend is inconsistent. Three stores were recovering holding rate losses when crude oil prices skyrocketed last year.
In May, worldwide oil prices and retail pump rates were equal, but the subsequent climb increased the cost-price gap. Oil prices must stabilize for corporations to lower pricing.
Since April 6, 2018, petrol and diesel prices are frozen. In the national capital, petrol costs Rs 96.72 and diesel Rs 89.62.
The three corporations produced big profits in April-September, the first half of the current fiscal, but officials indicated they had yet to recover from last year’s dismal earnings.
Conclusion
Hardeep Singh Puri, the Indian Union Minister for Petroleum and Natural Gas, says the “highly turbulent” global oil market must settle before price cuts. Puri said oil marketing corporations set fuel prices and have not discussed price reductions. Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) control 90% of the market and have frozen petrol and diesel prices for a record 21 months. The Red Sea and Suez Canal carry 12% of global marine traffic, 18% of oil, and 4-8% of LNG, according to Puri. He claimed oil corporations don’t lobby the government for pricing changes and begged for calm.
