Union Petroleum and Natural Gas Minister Hardeep Singh Puri has said that petrol and diesel prices in India may come down if lower-priced crude oil continues to reach domestic refineries.
Speaking during a press conference in Sonbhadra, Uttar Pradesh, the minister said that although global crude oil prices have remained volatile, Indian consumers have largely been protected from major fuel price increases.
He was addressing the media during the Centre’s campaign marking 12 years of the Narendra Modi government.
Government Absorbed the Burden of Rising Fuel Costs
Puri said the Central Government reduced excise duty on petrol and diesel in November 2021, May 2022, and once again recently.
According to him, these tax cuts have resulted in the government bearing a burden of nearly ₹10 per litre on both petrol and diesel instead of passing the entire cost on to consumers.
He added that, in real terms, fuel prices have not increased significantly despite fluctuations in international crude oil prices.
Fuel Prices Stable Despite Global Uncertainty
Responding to questions about possible fuel price cuts, Puri said India has managed fuel inflation better than most countries.
He claimed that among the 193 member nations of the United Nations, only Japan has witnessed a lower increase in petroleum prices than India over the same period.
The minister also stated that the total increase in petrol and diesel prices has been limited to around ₹7.60. Compared with prices during the Russia-Ukraine conflict that began in 2022, he said fuel prices are effectively lower today.
Oil Companies Facing Heavy Losses
Puri highlighted that geopolitical tensions, particularly around the Strait of Hormuz, have increased pressure on global oil markets.
He revealed that oil marketing companies are currently suffering losses of nearly ₹1,000 crore per day. However, he said the government has ensured that these losses have not been fully passed on to consumers.
According to the minister, oil companies are still processing crude oil that was purchased when international prices were higher.
Why Fuel Prices Have Not Fallen Yet
Explaining the delay in price reductions, Puri said refiners continue to hold inventories of expensive crude oil bought earlier.
Once these stocks are exhausted and cheaper crude oil reaches refineries, there is a possibility that petrol and diesel prices could be reduced.
This means consumers may benefit if international crude prices remain lower over the coming weeks.
Sonbhadra Emerging as a Model District
During his visit, Puri also spoke about the development of Sonbhadra.
He said the district has secured the top position in the Government of India’s Delta Ranking Programme, indicating major improvements in development indicators.
According to the minister, Sonbhadra is gradually moving beyond its image as a backward district and is on track to become a model district through coordinated efforts by both the Central and Uttar Pradesh governments.
India’s Economy Continues to Expand
Puri said India has witnessed rapid progress in infrastructure, energy, social welfare, and economic development over the past 12 years under Prime Minister Narendra Modi.
He stated that India has grown into a $4 trillion economy after being the world’s 11th-largest economy in 2014.
The minister added that the country is steadily moving toward becoming the world’s third-largest economy.
Uttar Pradesh Records Strong Economic Growth
Highlighting Uttar Pradesh’s progress, Puri said the state’s Gross State Domestic Product (GSDP) has increased from nearly ₹13 lakh crore in 2016-17 to approximately ₹36 lakh crore.
He also pointed to several development achievements, including:
- More than 23,000 startups
- Over 9 lakh government jobs filled through transparent recruitment
- Expansion of the One District One Product (ODOP) initiative
- Rapid industrial and economic growth
According to the minister, these initiatives have strengthened employment opportunities and boosted investment across the state.
Religious Tourism Driving Local Economy
Puri also highlighted the growing importance of religious tourism in Uttar Pradesh.
He said cities such as Ayodhya, Kashi (Varanasi), and Prayagraj are emerging as world-class spiritual destinations.
Projects including the Ram Temple, the Kashi Vishwanath Corridor, and infrastructure developed for the Mahakumbh have significantly increased tourism, generated local employment, and supported economic activity.