Decision on fuel price cut to be considered after crude prices sustain around $80/bbl: Oil minister Puri

Hardeep Singh Puri

The decision on slashing petrol and diesel prices in the domestic market could be considered if crude oil prices sustain around $80 a barrel over a sustained period, said Minister of Petroleum and Natural Gas Hardeep Singh Puri on June 11.

Puri, on June 10, was re-appointed as the oil and gas minister in the third-term under Prime Minister Narendra Modi.

"Several things decide the price of crude oil including the cost of transportation and insurance. The cost of transportation and insurance has the ability to spiral up, if there is disturbance in the Red Sea or elsewhere," said Puri.

To be sure, crude oil prices are currently trading below $80 per barrel despite OPEC deciding to continue supply cuts till September 2024.

The minister added that India is among the few nations in the world where fuel prices have declined since the geopolitical tensions begun after war broke out between Russia and Ukraine.

The state-run oil marketing companies had in March cut retail petrol and diesel prices by Rs 2 per litre across the country. However, the companies are yet to start the daily revision of fuel prices in the country.

Puri said the focus of the oil ministry under the new government would be on boosting oil and gas exploration, green hydrogen and increasing gas consumption in the country.

He added that peak production from ONGC's 98/2 block of 45,000 barrels per day (bpd) is expected to be reached soon. The government would also conduct the ninth and tenth OALP round in the coming few weeks, Puri said,