India Unlikely to Reduce Petrol, Diesel Prices as Costly Crude Still in Refinery Pipeline

India is unlikely to cut petrol and diesel prices immediately despite international crude oil falling to a four-month low, as state-run refiners are still processing high-cost crude purchased during the peak of the West Asia conflict , Union Petroleum Minister Hardeep Singh Puri said on Friday.

The minister said refiners are currently processing crude bought two to two-and-a-half months ago , when global oil prices, freight and insurance costs were significantly higher. As a result, the recent decline in crude prices has not yet reduced fuel production costs. He added that retail fuel prices could be reviewed if global crude remains low for a sustained period .

International crude prices have dropped from around USD 119 per barrel to nearly USD 70 , following an interim peace understanding between the United States and Iran that eased concerns over disruptions in the Strait of Hormuz.

Petrol and diesel prices in India were raised by about ₹7.50 per litre in May, but the increase did not fully reflect higher global fuel costs. According to Puri, Indian Oil Corporation (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) together incurred losses of ₹74,781 crore on petrol, diesel and subsidised LPG sales.

On Nayara Energy's recent fuel price cuts, Puri said the move largely reversed the company's earlier hikes and aligned its retail prices with those of state-run retailers.

Highlighting India's energy security, the minister said the country diversified crude imports and increased LPG purchases from the US during the four-month regional conflict, ensuring uninterrupted fuel supplies . He added that India currently has fuel stocks sufficient for 76–80 days and plans to further expand its strategic storage capacity.