Union Minister Hardeep Singh Puri elaborated that the retail gas presently being offered on the pumps was obtained from crude oil bought a number of months in the past. |Photograph courtesy of ANI
Oil Minister Hardeep Singh Puri advised reporters on Thursday (2 July 2026) that petrol and diesel costs will come down solely as soon as the presently low cost crude oil reaches India’s shores and refineries. Due to this fact, it signifies {that a} downward revision will not be attainable instantly.
The petroleum minister additionally introduced that India’s state-run oil advertising and marketing firm suffered a lack of round Rs 74,781 crore on gross sales of LPG, petrol and diesel within the June-end quarter.
“Gasoline and diesel from crude oil bought just a few months in the past.”
Puri elaborated that the retail gas presently being offered on the pumps comes from crude oil bought months in the past when conflicts in West Asia drove up costs, together with freight and insurance coverage costs.
As a routine apply, refiners sometimes seal crude oil purchases about two months earlier than they really obtain them.
“The gasoline and diesel that we purchase from gasoline stations immediately comes from what was obtainable in crude oil two months in the past,” he stated, including, “Meaning it was purchased on the value it was then. Crude oil wasn’t at this value (which is about $70 a barrel, which is decrease than it’s now), and the insurance coverage and freight prices have been what they have been then.”
Puri added: “Oil that’s presently promoting for lower than $70 a barrel will arrive a lot later.”
The benchmark Brent crude oil futures value in April this 12 months had risen to the $110 per barrel mark on the peak of the West Asian disaster.
On Thursday night, Brent crude oil was buying and selling at its lowest in additional than 4 months at $70.15 a barrel, additional down from its pre-conflict lows.
Monetary burden on OMC
The petroleum minister additionally advised reporters that losses because of under-recovery, or the distinction between the promoting value of petrol, diesel and LPG and the necessary value required to fulfill manufacturing prices, totaled about Rs 1.89 billion within the quarter ended June.
This contains under-recovery of Rs 19,905 crore on petrol, round Rs 1.45 lakh crore on diesel and round Rs 24,148 crore on LPG.
“I am not nervous about future oil costs, however we should be ready.”
Reflecting on how costs will develop sooner or later, Puri confused, “I am not nervous, however we’ve to organize for it,” including: “Stocking up whereas (oil) costs are low, constructing extra space for storing, stepping up outreach to our bilateral companions, all of this can go hand in hand.”
Individually, in response to buyer inquiries, hinduism On increasing storage capability, Puri stated India presently has 76-80 days of crude oil stock. This contains crude oil inventories in ports, refineries, pipelines, and the Strategic Petroleum Reserve.
He added: “However after this sort of expertise with Swiss Generis, you do not wish to miss the chance. We’ll develop much more.”
“Russia’s gasoline exports come from merchants, in a roundabout way from OMCs”
Additional, in response to a query about India’s state-owned OMCs exporting petrol to Russia, Puri stated purchases could also be made by way of merchants quite than instantly from OMCs.
“Our produce can be bought from merchants. It’s fairly attainable that the merchandise of Indian origin concerned have been bought from merchants,” he added.
