Fuel price reduction possible only if global crude stays low for 2-3 months, says Puri

DEFENDS THE CENTRE’S FUEL PRICING POLICY

- SIMONTINI BHATTACHARJEE

Defending the government’ fuel pricing policy, Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Thursday said the Modi government shielded consumers from sharp increases in petrol, diesel and LPG prices while ensuring uninterrupted supplies of crude oil, LPG and natural gas despite geopolitical disruptions.

However, Puri indicated there may not be any immediate cut in retail fuel prices. He said petrol and diesel prices do not move in line with daily fluctuations in international crude oil prices because of the time required for procurement, transportation and refining.

“The oil currently being sold has been refined using crude bought several weeks, if not months, earlier at higher prices. As long as global crude prices remain low and stable, consumers will eventually benefit, although there is always a delay” he said.

Puri said any decision on reducing retail fuel prices would depend on how long the current trend in global crude prices continues.

“As mentioned earlier, the companies still have stock that was bought when the cost of crude oil, insurance and freight charges was much higher. If the trend continues for another two to three months, it would be time to reconsider retail prices.

At this stage, however, it is too early to make any predictions,” he added.