Petrol and diesel prices have risen steadily in recent weeks, but Union Petroleum and Natural Gas Minister Hardeep Singh Puri has indicated that consumers could see some relief in the coming months. Speaking to CNN-News18, Puri said global crude oil prices are expected to soften gradually, although ongoing geopolitical tensions in the Gulf region continue to pose a significant challenge to energy markets.
Key Highlights
- Petrol prices have increased by nearly 7.8 percent since mid-May.
- Diesel prices have risen by approximately 8.6 percent during the same period.
- Four revisions since May 15 have pushed fuel prices up by more than Rs 7 per litre.
- The government expects global crude oil prices to moderate in the months ahead.
- India currently has sufficient oil and gas reserves to meet demand for 76 to 80 days.
Multiple Price Hikes Push Fuel Costs Higher
Since the first fuel price revision on May 15, petrol and diesel rates have been increased four times. These successive hikes have led to a noticeable rise in retail fuel prices across the country.
Analysts attribute the increase primarily to higher global crude oil prices and disruptions in international supply chains.
Pressure Mounts on the Strait of Hormuz
According to Puri, the conflict involving Iran has affected the transportation of oil and natural gas through the Strait of Hormuz, one of the world’s most critical energy trade routes.
Before the disruptions, nearly 20 percent of global oil and natural gas supplies passed through the strategic waterway. Concerns over potential supply shortages have driven international crude oil prices sharply higher, pushing benchmark crude close to the USD 100-per-barrel mark.
India Confident About Energy Security
The minister said India is adequately prepared to deal with any potential supply disruptions. The country’s strategic reserves are currently capable of meeting domestic demand for approximately 76 to 80 days.
He also noted that additional supplies from the United States, Canada, and other Western Hemisphere countries could help reduce the impact of any interruptions in traditional supply routes.
What Lies Ahead?
While recent fuel price hikes have increased costs for consumers and businesses, the government believes pressure on fuel prices could ease if global crude oil markets stabilize.
As India imports a substantial portion of its crude oil requirements, domestic petrol and diesel prices remain closely linked to international market trends. If crude oil prices begin to decline, consumers may gradually see relief at the fuel pump in the months ahead.