New Delhi: Union Petroleum Minister Hardeep Singh Puri on Friday said consumers should not expect a drop in fuel prices until cheaper crude oil becomes available. He noted that fuel currently sold at petrol pumps was bought months earlier when crude prices and insurance costs were high because of conflicts in West Asia.
Puri told reporters that public sector oil marketing companies incurred losses of about Rs 74,781 crore during the second half of June from sales of LPG, petrol and diesel. He explained that refineries typically secure crude purchase contracts roughly two months before supplies arrive, so retail fuel today reflects past crude buys.
The minister recalled that Brent crude spiked to around $110 a barrel in April when the West Asian crisis intensified, but had fallen to $70.15 per barrel by Thursday evening. Still, because of the gap between production costs and retail prices, oil firms’ losses for the June half-month amounted to Rs 1.89 lakh crore, Puri said. He gave a break‑down of the losses as about Rs 19,905 crore on petrol, roughly Rs 1.45 lakh crore on diesel and Rs 24,148 crore on LPG.
On future oil-price management, Puri said the government is not worried but aims to store supplies while prices are low, expand storage capacity and strengthen cooperation with bilateral partners. He added India currently holds about 76–80 days of oil stocks. Citing past experience, he said authorities are not prepared to take undue risks and will continue to increase storage capacity.