Fuel Prices
Scope to cut fuel prices if global dynamics remain unchanged, says oil minister
This story was originally published at 17:30 IST on 17 July 2025
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--Oil minister: Crude price likely to be between $65-$70/barrel in near term
--CONTEXT: Oil Minister Puri addressing media in New Delhi
--Oil minister: See scope to lower fuel prices next quarter
--Oil minister: Crude price more likely to be under $65/bbl than over $70/bbl
NEW DELHI/ MUMBAI – Petroleum and Natural Gas Minister Hardeep Singh Puri Thursday indicated that there is scope to cut domestic fuel prices in the next quarter if global dynamics remain unchanged.
Addressing a press conference in New Delhi, the minister said crude oil prices are likely to remain between $65 and $70 per barrel in the near term, with a higher probability of prices being under $65 per barrel. The minister emphasised that crude oil prices will play a significant role in determining fuel prices in India, stating that ample supplies are available in the market.
Last week, the International Energy Agency lowered its forecast for global oil demand growth in 2025 and 2026 to 700,000 barrels per day and 720,000 barrels per day, respectively. At the same time, the Paris-based autonomous intergovernmental organisation expects world oil supply to rise by 2.1 million barrels per day in 2025 and by an additional 1.3 million barrels per day in 2026.
On India's reliance on Russia for its crude oil needs, Puri said New Delhi was not dependent on any one country. "We're not relying on anyone... We have 0.2% from that country, it went up, it can come down, it can go sideways, otherwise there is no issue. If there is sufficient oil available in the market, then... we don't need to decide, we float a tender at the point of importation." India, which previously purchased less than 1% of its crude oil imports from Russia before the war in Ukraine, has since increased its imports from the country, with Moscow accounting for over 35% of imports in recent times.
Earlier in the day, the minister said there is no need to worry about the threat of secondary tariffs from the US. "I am not worried at all. If something happens, we will deal with it," Puri said. There is also an ample supply of crude in the market with oil coming from the Western Hemisphere, he said, adding that crude oil prices "will" fall owing to the supply.
US President Donald Trump on Monday threatened to announce 100% secondary tariffs on Russia if there is no deal between Russia and Ukraine in 50 days. Trump has expressed frustration with Russian President Vladimir Putin due to the lack of progress on peace with Ukraine.
On increasing ethanol blending beyond 20%, Puri said a decision would be made after consulting all stakeholders. "Today, 20% is not a question. The issue is how much beyond 20%, and I personally think it requires stakeholder consultation, only for no other reason but for everybody to have a comfort level so that we move seamlessly."
The Indian government has set a target of achieving 20% ethanol blending in the current financial year.
Meanwhile, Petroleum Secretary Pankaj Jain said the government is hopeful of resolving the problem faced by Indian public sector companies on the Mozambique LNG project. "We're very hopeful of reaching a stage where the force majeure could be lifted," Petroleum Secretary Pankaj Jain said. The Mozambique LNG project, in which Indian public sector companies hold around a 30% stake, is currently under force majeure due to security concerns in the Cabo Delgado region. End
Reported by Pallavi Singhal, Shakshi Jain, J. Navya Sruthi (With inputs from Krity Ambey)
Edited by Saji George Titus
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