Petrol, diesel rates may ease as cheaper crude arrives, says oil minister Hardeep Puri

Oil minister Hardeep Singh Puri said petrol and diesel prices may ease if recently purchased lower-cost crude oil reaches Indian refiners and works through the supply chain.

The statement comes after market reports on June 15 and June 16 said retail fuel prices in India stayed unchanged even as global crude prices softened. Earlier coverage also said prices had been steady since May 25.

What Puri said

Puri's remarks point to a possible pass-through from lower crude costs to consumers, but not an immediate one. The key question is how quickly the cheaper cargoes move from procurement into refining, distribution and retail pricing.

The minister has previously highlighted pressure on state-run oil marketing companies. In May, he said the companies were losing about Rs 1,000 crore a day on petrol, diesel and LPG sales below cost, and that cumulative under-recoveries had reached nearly Rs 1.98 lakh crore.

Why pump prices have not moved yet

The latest signal is that lower input costs could eventually create room for relief at the pump. But the research available so far does not show any formal price cut, schedule or rate signal from the ministry or the oil marketing companies.

That means any reduction for consumers will depend on whether the cheaper crude has already reached refiners and whether the savings are passed through rather than absorbed in the pricing system.

What to watch next

The next developments to watch are whether state-run oil marketing companies announce any retail cut after processing the cheaper crude cargoes, and whether the ministry or the companies give a clearer timeline.

For now, the story is a policy signal rather than a confirmed price change.