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Informist, Monday, Apr. 7, 2025

 

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--Oil minister: If crude prices stay $60-$68/bbl, retail oil prices may fall 
--Oil minister: To compensate oil cos for losses incurred on LPG subsidy 
--Oil minister: LPG price hike to come into effect from Tue 
--Oil minister: To review LPG prices every 15 days 
--Oil minister: Oil cos to have enough space to cut prices even if crude rises 
--Oil minister: Average LPG prices to rise by INR 50 per cylinder 

 

NEW DELHI – Hours after the Finance Ministry hiked excise duty on petrol and diesel by INR 2, Oil Minister Hardeep Singh Puri informed reporters that while this hike is not being passed on to consumers, retail fuel prices may soften going ahead if crude oil prices remain at the $60-$68 per barrel level.

Oil prices plunged recently due to uncertainty around global tariffs. Brent and West Texas Intermediate benchmarks fell to their lowest level since April 2021, per reports. India opted to hike excise duties on fuel in this backdrop. However, Puri argued that prices were hiked to compensate oil marketing companies who had faced losses. The LPG under-recovery of oil marketing companies in 2024-25 (Apr-Mar) was INR 413.38 billion. 

 

"We are committed to giving the money to the oil companies. Because the oil companies have incurred it on our behalf as a subsidy. But whether the whole (INR) 410 billion will be done or INR 160 billion, that remains to be seen. The government has enough headroom for that," Puri said.

 

In addition, Puri said that public and private oil marketing companies carry inventories over 45-day periods. In January, Brent prices were $83 a barrel, before moderating to $75 in February. Currently, these companies are carrying inventories priced at $75 per barrel, Puri said. He stressed that India remains the only country in the world where fuel prices have come down over the last three years. 

 

Prices of liquefied petroleum gas cylinders will be hiked by INR 50 from Tuesday, Puri said. For consumers registered under the Pradhan Mantri Ujjwala Yojana, cylinder prices will be hiked to INR 550, while consumers not part of the scheme will pay INR 853 per cylinder. "...this will be reviewed every 15 days or one month, whichever is the system. And in the case of petrol and diesel, as I said, if this trend remains, then the price is likely to be revised by them," Puri said.  End

 

Reported by Anand JC

Edited by Deepshikha Bhardwaj

 

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