Synopsis
According to Union Petroleum Minister Hardeep Singh Puri, petrol prices in India are among the lowest globally. He noted that fuel prices have dropped over the years and discussed the increasing oil supply from various countries. Puri emphasized India's economic advancement under PM Modi and projected continued growth in petroleum demand.Key Takeaways
- Petrol prices in India are among the lowest worldwide.
- There has been a decrease in fuel prices over the years.
- India sources oil from 40 countries, an increase from 27.
- The government does not profit from petroleum sales.
- India aims for a $4 trillion economy soon.
New Delhi, Feb 22 (NationPress) Union Petroleum Minister Hardeep Singh Puri has stated that petroleum prices in India rank among the lowest globally. During a press briefing in Vijaywada, Andhra Pradesh, he highlighted that fuel prices have decreased both in nominal and real terms over the years.
Puri discussed the current global oil supply, indicating that increased amounts of oil are now sourced from nations such as the United States, Brazil, Guyana, Suriname, and Canada.
He emphasized that there is no oil shortage, noting that India now receives oil from approximately 40 countries, up from 27 previously. He welcomed the prospect of more countries joining this list, as it could further decrease prices.
The Minister remarked, “Petroleum prices have indeed decreased over the past three years.”
Puri elaborated that there has been a negative growth of -0.67% in petrol prices, while diesel prices saw a slight increase of 1.15%.
Additionally, he clarified that the government does not profit from petroleum sales; rather, it has had to allocate ₹22,000 crore to support oil companies.
Reflecting on India’s economic trajectory, Puri noted that in 2014, when Prime Minister Narendra Modi assumed office, India was the 10th largest economy and classified as one of the “Fragile Five” nations that relied heavily on foreign investments for growth.
“Under PM Modi’s leadership, India’s economy has advanced significantly. We have moved from being the 10th largest economy to the 4th largest,” Puri stated.
He expressed confidence that India is on track to achieve a $4 trillion economy soon.
A report from Fitch Ratings predicts a 3% to 4% increase in India’s demand for petroleum products in the financial year concluding on March 31, 2025.
However, India’s Oil Marketing Companies may experience a decline in refinery margins during FY25 due to various challenges, such as weaker product market conditions, oversupply in the region, and diminished benefits from fluctuations in crude oil prices, the report warned.
This expected margin reduction could pressure OMCs' profitability as refining economics become less favorable.
