Union Petroleum Minister Hardeep Singh Puri has hinted that petrol and diesel prices will only be reduced once global crude oil rates stabilise at lower levels for at least two to three months. Despite Brent crude slipping to around $70 per barrel, refiners are still processing costlier crude purchased during the West Asia crisis, delaying immediate relief for consumers.
Puri explained that fuel sold today is refined from crude bought two months earlier at higher prices, meaning current inventories are still expensive. He stressed that price cuts would be considered only if international crude prices remain consistently low and stable. India currently holds crude reserves for 76–80 days, strengthening energy security.
Oil Marketing Companies (OMCs) have faced heavy under-recoveries, with losses of nearly ₹1.88–2.18 lakh crore in Q1 FY2027, largely due to diesel pricing. While private retailer Nayara Energy recently reduced petrol by ₹5 per litre and diesel by ₹3 per litre, state-run OMCs have not yet followed suit.
Global crude prices have corrected sharply from $110 per barrel in April 2026 to about $70 now. Analysts suggest that if prices hold steady, consumers may see relief by late August or September 2026. However, volatility in West Asia remains a risk, and any escalation could push crude prices back up.
