NEW DELHI, JUL 2 (PTI): International crude oil prices may have fallen to a four-month low, but retail petrol and diesel prices in India are unlikely to be cut anytime soon as state-run refiners are still processing costlier crude purchased during the peak of the West Asia crisis, Oil Minister Hardeep Singh Puri said.
Puri said state-owned fuel retailers incurred cumulative losses of Rs 74,781 crore on the sale of petrol, diesel and subsidised cooking gas (LPG).
The figure includes losses from selling petrol and diesel below cost for four months following the outbreak of West Asia conflict on February 28, as well as unrecovered LPG subsidies for the same period and earlier months.
International oil prices have retreated over the past two to three weeks after the United States and Iran signed an interim peace deal, easing concerns over the Strait of Hormuz. Crude oil prices have fallen from USD 119 per barrel at the peak of the conflict to around USD 70 now.
Puri, however, said refiners, who turn crude oil into fuels like petrol and diesel, are currently processing crude bought two or two and a half months back. That crude was bought at high prices.
“That crude would have been obtained two months back (when) prices were high, cost of insurance was high, cost of freight was high,” he said. “Crude priced at current lower rates will arrive (at refineries) later.”
A fuel price cut can be looked at if oil prices remain at low levels for a sustained period, he said.
“If it (oil prices) remains like this (at current rates), it (cutting retail prices) is a legitimate thing,” he said.
On price outlook, Union oil minister said he is “not worried but we have to prepare for its stocking. That means increasing storage space and intensifying outreach to bilateral partners (for sourcing energy).”
Friday, July 3, 2026