Crude Oil Prices Drop: When Will Petrol And Diesel Prices Fall?
Following an agreement between the US and Iran, a decline in crude oil prices has been recorded in the international market. People are hoping for an imminent reduction in the prices of petrol, diesel, and gas. However, Suresh Gopi, Minister of State for Petroleum, Natural Gas, and Tourism, stated on Thursday that a drop in global crude oil prices does not mean petrol and diesel prices in India will decrease immediately.
He explained that domestic fuel prices are influenced by several factors, including the time it takes for crude oil purchased at a lower rate to reach India. Speaking to reporters about the recent hike in fuel prices, Gopi noted that while there was an increase of ₹3.94 per litre, it cannot be immediately rolled back simply because international crude oil prices have fallen. He said, “It will take time because the cheaper crude oil must be transported to India via the Strait of Hormuz, an area with heavy vessel traffic. Therefore, it will take time for the situation to normalize.”
Loss Of ₹12,000 Crore
Gopi stated that the volatility in the global energy market following the conflict in West Asia earlier this year significantly impacted Oil Marketing Companies (OMCs). The government absorbed a large portion of the burden caused by high crude oil prices to prevent the full impact from falling on consumers. He said, “The government incurred a loss of ₹12,000 crore by shouldering this burden itself. No state reduced its revenue by cutting levies on high fuel prices. The central government has to function, and oil companies must also remain viable.”
By How Much Did Crude Oil Prices Fall?
Gopi remarked that fuel prices are determined by various market and logistical factors, not merely by fluctuations in international crude oil benchmarks. Notably, a decline in crude oil prices was recorded on Thursday. Prices of the international benchmark Brent crude fell by 1.64 percent to around $78 per barrel. Meanwhile, the Ministry of Petroleum and Natural Gas stated on Thursday that the supply of cooking gas to households across the country remains normal, despite disruptions in the supply chain.
What Is The Update On LPG?
Approximately 1.47 crore domestic LPG cylinders were supplied against 1.36 crore new bookings over the last three days. Additionally, around 10.02 lakh PNG connections have been activated since March of this year, and infrastructure has been put in place for another 3.22 lakh connections. About 9.44 lakh consumers have registered for new PNG connections. Adequate stocks of petrol and diesel are also available at petrol pumps across the country.
