NEW DELHI: A day after reducing liquefied petroleum gas (LPG) cylinder prices by Rs 100 nationwide, petroleum minister Hardeep Singh Puri clarified there are no plans to cut petrol and diesel prices in the domestic market until crude prices stabilise in the international market.
The minister cited volatile nature of the international oil market and ongoing under-recoveries by the oil marketing companies.
“I will only say if the situation in the outside world stabilises and oil prices stabilise, then the price cut on petrol and diesel can be considered. But if you say the attack is taking place somewhere in the world and insurance and freight prices go up... oil companies are incurring under-recoveries on the sale of diesel,” said the petroleum minister.
The minister also mentioned the government was able to keep oil prices from shooting up despite global turbulence amid the Russia-Ukraine conflict and drone attacks on merchant ships in the Red Sea. As the general election is around the corner, it was believed that the government may cut the price of gasoline and diesel in the country.
On March 8, 2024, the Prime Minister, Narendra Modi, announced slashing liquefied petroleum gas (LPG) cylinder prices by Rs 100 in the country. With this price reduction, the standard 14.2-kg domestic LPG cylinder would cost Rs 803 in Delhi, Rs 802.50 in Mumbai, Rs 829 in Kolkata, and Rs 818.50 in Chennai.
Subsequently, GAIL also announced the price cut on CNG (Compressed Natural Gas) at Rs 2.50 per kilogram. There is an expectation that the oil marketing companies can also cut down on the price of diesel and gasoline in the country.
The reason being, oil companies such as Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation Limited have been profitable for the past three quarters. The last nationwide fuel price revision took place on May 21, 2022, when Finance Minister Nirmala Sitharaman reduced the excise duty on petrol by Rs 8 per liter and on diesel by Rs 6 per liter.