Fuel Price Relief On Horizon As Crude Stabilizes, Says Oil Minister Puri

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India’s Union Petroleum Minister Hardeep Singh Puri has signaled a potential reduction in petrol and diesel prices if global crude oil remains at current levels for the next two to three months. The announcement comes amid sustained price stability in international markets and growing expectations of consumer relief.

Key Highlights From Minister’s Statement

- Brent crude has been trading in the USD 70–75 per barrel range since late 2024, with recent dips to USD 63–65
- Puri stated that if this trend continues, fuel prices could be revised downward—the first cut since March 2024
- The last reduction was Rs 2 per litre ahead of the general elections, following earlier excise duty cuts in 2021 and 2022
- Oil Marketing Companies (OMCs) currently enjoy positive marketing margins, creating fiscal room for price adjustments

Market Dynamics And Strategic Factors

- India imports over 85 percent of its crude needs and has diversified sourcing from 40 countries, including Russia, Brazil, and Guyana
- The government is balancing affordability with fiscal discipline, especially amid tariff pressures and global supply shifts
- Domestic exploration is being ramped up, with new wells in the Andaman region showing promising reserves
- LPG subsidies under the Ujjwala scheme continue to support low-income households, with clean fuel priced at just Rs 33 per kg

Outlook

If crude prices remain subdued, consumers may see a fuel price cut by September 2025. The government is closely monitoring global trends and remains committed to ensuring energy affordability without compromising supply security.

Sources: Times of India, Economic Times, Financial Express, Business Today, ET EnergyWorld.