A cut in petrol and diesel prices could be considered when global crude prices stabilise, petroleum minister Hardeep Singh Puri said on Saturday. However, given the ongoing crisis in the Red Sea and other geopolitical tensions, a reduction in fuel prices seems unlikely for the oil marketing companies, he added.

“I will only say that if the situation of the world is stable, oil prices are stable, then it (price cut on petrol and diesel) can be looked at.

“However, if an attack is taking place somewhere in the world, insurance and freight prices go up...” he said, as he referred to the Houthi attacks in the Red Sea and the Russian-Ukraine war.

State-run OMCs, including the Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (BPCL) revise domestic fuel prices based on international oil prices.

However, fuel prices have been left unchanged since May 2022, despite crude oil prices trading around $80 per barrel compared with $140 per barrel in March 2022.

With the upcoming general elections in the country, the consumers were looking forward to a reduction in petrol and diesel prices.

Puri said the government has foregone around Rs 2.2 lakh crore of revenue because of cuts in excise duty on petrol and diesel announced between November 2021 and May 2022.

“Excise duty on petrol and diesel was cut by Rs 13 a litre and Rs 16, respectively, between November 2021 and May 2022. Revenue foregone as a result of the cuts was Rs 2.2 lakh crore,” he said.

The Union minister said 85 per cent of India’s crude oil requirements are met by imports, with the price of crude in the international market being the benchmark.

Puri elaborated on how the ‘Russia-Ukraine war’ impacted the crude oil supply, but India was able to manage its supply by diversifying its sources and increasing the purchase from Russia despite fear of sanctions.

KG basin

Meanwhile, the first cargo of ONGC’s newly explored crude oil from KG basin deep-sea block was received at Mangalore Refinery and Petrochemicals Ltd (MRPL) on Saturday.

The oil from KG-DWN-98/2 was brought to Mangalore on a ship named Swarna Sindhu.