“Oil Prices Cannot Be Reduced Overnight,” Says Suresh Gopi, Flags Shipping Delays Via Hormuz

Union Minister of State for Petroleum, Natural Gas and Tourism Suresh Gopi on Thursday said that “fuel prices cannot be reduced immediately” even when global crude oil rates fall, stressing that pricing adjustments depend on supply chains, taxation structures and market stabilisation timelines.

Explaining the delay in passing on international price benefits, he said crude oil must first reach India and move through refining and distribution systems before any reduction can reflect at retail outlets. He pointed to the Strait of Hormuz , stating that heavy vessel traffic and geopolitical tensions in West Asia can slow down shipments and disrupt normal supply flow.

Gopi also said that recent price revisions have shown limited immediate impact on consumers, with only about Rs 3.94 per litre change reflected in fuel rates. He further noted that the Centre has already borne a significant fiscal burden, stating that the government absorbed losses of nearly ₹12,000 crore due to global oil volatility.

“The central government has to run and the oil companies have to survive,” he said, adding that pricing is also shaped by excise duty and state taxation decisions , as many states have not reduced taxes even during periods of high fuel prices.

Recent official assessments suggest that the government is continuing to review crude oil supply conditions amid ongoing instability in West Asia. Authorities have indicated that fuel pricing decisions will be taken only after evaluating supply chain normalisation and refinery cost inputs, rather than reacting immediately to global crude fluctuations.

On Kerala’s proposal for an AIIMS , he said the process must follow established procedures and cannot be treated casually. “It cannot be done like shopping in a market,” he remarked, adding that the state must submit identified sites for evaluation by the central committee.

Responding to Kerala Health Minister K Muraleedharan, Gopi said there appears to be a communication gap and confirmed he has not yet received any official invitation for discussions.