There's a piece of relieving news for the public across the country, struggling with inflation. There may soon be a reduction in the prices of petrol and diesel. These indications have been given by the Union Petroleum Minister Hardeep Singh Puri himself. He recently stated in a statement that if crude oil prices remain stable in the global market, the Government of India may consider reducing petrol and diesel prices.
Adequate Supply Despite Increasing Demand
The minister also clarified that the demand for petroleum products is increasing rapidly worldwide, but despite this, there is no crisis regarding supply in India. The Government of India and oil companies are taking full care to ensure that the supply of fuel in the country continues uninterrupted.
Minister Lays Down Condition
Hardeep Puri said that the government will reduce the prices of petrol and diesel only when crude oil prices remain at a stable level in the international market for 2 to 3 months. According to him, if the price of crude oil remains stable at a lower level, then consumers can directly benefit from it.
Improvement in Oil Companies' Margins
Recently, an improvement has been seen in the quarterly results of public sector oil marketing companies (OMCs). Companies like Indian Oil, Bharat Petroleum, and Hindustan Petroleum are now getting positive margins on sales. In the last financial year, these companies had to suffer heavy losses due to the volatility in crude oil prices, but now the situation seems to be balancing out.
Government Control in the Price Determination Process
Although petrol and diesel prices are updated every day in India, the decision to control their actual prices largely rests in the hands of the government. Oil companies determine prices according to the international market, but many times the government urges them not to revise, so that the burden on the general public does not increase.
Last Major Cut in 2022
It is noteworthy that in May 2022, the central government provided relief in the prices of petrol and diesel by reducing the excise duty. Since then, there has been no major change in the prices of petrol and diesel. For the past few months, there has been fluctuation in the prices of crude oil in the international market, but now there are expectations of them stabilizing.
Dependence on Imports Remains a Challenge
India meets approximately 85 percent of its petroleum needs through imports. In such a situation, any increase or decrease in prices in the international market directly affects the domestic market. This is the reason why the government takes any concrete decision only after looking at the international situation.
Government is Assessing the Situation
The Petroleum Minister also informed that the ministry's teams are constantly monitoring global energy markets. They prepare reports every week based on information on the production, consumption, and supply of oil-producing countries. Further strategy will be made based on this data.
Hope for Relief but No Decision Soon
It is clear from Hardeep Puri's statement that the government is serious about the prices, but it is also clear that no decision will be taken in haste. The government wants to see the trend of global crude prices for the next 2 to 3 months. Only after this, a final decision will be taken on any change in prices.
The Eyes of the Common People are Fixed on the Decision
In many parts of the country, petrol is being sold for more than 100 rupees per liter, while diesel prices are also around 90 rupees. In such a situation, if there is a reduction in prices, it will directly affect everything from transportation to inflation. Therefore, the public's eyes are now fixed on the government's next announcement.
