Despite the fall in crude oil prices, the government has refused to reduce the prices of petrol and diesel. The government cited market instability and huge losses for oil companies from the West Asia crisis.
New Delhi [भारत]July 23 (ANI): The government on Thursday gave no indication whether it will reduce petrol and diesel prices despite the recent fall in Brent crude oil prices. The government says that due to the ongoing crisis in West Asia, international oil markets are extremely volatile and public sector oil marketing companies (OMCs) have suffered huge losses.
Huge fluctuations in crude oil prices
In a written reply to an unstarred question in the Lok Sabha, Minister of State for Petroleum and Natural Gas Suresh Gopi cited continued volatility in international crude oil prices due to the West Asia crisis. The government was answering questions related to the reduction in prices of petrol and diesel. The minister said, “The price of Brent crude oil was US$ 122.86/barrel on April 30, 2026 and US$ 68.17/barrel on July 2, 2026. However, Brent crude prices continue to fluctuate wildly and it has again increased to US$ 92.19/barrel on July 21, 2026.”
This reply came to a question asking whether the government has taken any decision to reduce the prices of petroleum products including petrol and LPG in line with the fall in Brent crude oil prices.
Excise duty was reduced in March
Explaining the factors affecting domestic fuel prices, the government did not comment on the decision to reduce retail prices of petrol or diesel. Instead, the government said India imports more than 88 percent of its crude oil requirement and international crude oil prices have increased significantly since March 2026 due to the West Asia crisis. “To protect consumers from its impact, in March 2026, the government reduced excise duty on petrol and diesel by Rs 10 per litre, resulting in a substantial negative impact on its tax revenues,” the minister said.
Oil companies suffered huge losses
The response also said that the ongoing geopolitical uncertainty has affected the financial position of state-owned oil retailers. The minister said, “The conflict in West Asia has not subsided and as a result the geopolitical situation remains highly volatile. PSU OMCs have suffered huge losses on the sale of petrol, diesel, LPG etc. Despite this, only marginal increase in the prices of petrol and diesel was made by the PSU OMCs.”
Current prices of petrol and diesel in Delhi
According to the government, the current retail selling price in Delhi is Rs 102.12 per liter for petrol and Rs 95.20 per liter for diesel.
The reply did not mention any time-frame or conditions under which petrol and diesel prices could be reduced. (ANI)
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