New Delhi: Amid a sharp surge in global crude oil prices, the government of India has decided not to pass on the burden to consumers, choosing instead to absorb the financial impact, Union Petroleum Minister Hardeep Singh Puri said on Friday.
Addressing concerns over a potential spike in fuel prices, Hardeep Singh Puri clarified that there has been no increase in petrol and diesel rates domestically, despite international crude prices rising steeply in recent weeks. He noted that crude prices have jumped from around $70 per barrel to nearly $122 per barrel due to ongoing tensions in West Asia.
According to the minister, the government is currently bearing a loss of approximately ₹24 per litre on petrol and ₹30 per litre on diesel to keep prices stable for consumers. He highlighted that many countries across Southeast Asia, North America, Europe, and Africa have already witnessed fuel price hikes ranging between 20 to 50 percent.
Puri explained that policymakers faced a difficult choice—either raise fuel prices significantly or absorb the impact to protect citizens from global volatility. He said the leadership of Narendra Modi opted for the latter, prioritising relief for the public.
To manage the situation, the government has also reduced excise duties and imposed export taxes on petroleum products to ensure domestic availability and limit excessive profits from overseas sales.
Officials believe these steps will help stabilise the domestic market during a period of global uncertainty, although they acknowledged that sustained pressure on public finances may continue if crude prices remain elevated.
