New Delhi: Union petroleum minister Hardeep Singh Puri on Thursday said that oil-marketing companies (OMCs) suffered Rs 74,781-crore losses for selling petrol, diesel and LPG below cost for the period up to June 30 when global crude oil prices spiked in the wake of the West Asia conflict. However, the minister indicated that the government would relook at petrol, diesel prices, if global oil rates stay low for the next few weeks.
Briefing the media, Puri also said that international crude oil prices have come down but companies are still processing crude they bought at the height of the West Asia crisis. On whether there would be a cut in prices of petrol and diesel, Puri responded ‘diplomatically’, saying that this would be a legitimate question, if oil prices stayed low for the next few weeks.
Oil companies typically buy crude oil — the raw material for producing fuel — at least two months in advance. So, crude oil that is being processed now is essentially what was bought in April or early May when international prices were very high. Crude oil prices started coming down only in the second half of June after the US and Iran reached an agreement to end the conflict.
The minister also said the government had largely shielded consumers from volatility in global crude oil markets, adding that India navigated the recent Hormuz crisis without any major disruption in fuel supplies. “Not one retail outlet reported a dry-out,” he said, saying that India has about 1.07 lakh fuel retail outlets and the government has absorbed most of the shocks arising from the crude crisis.
Separately, Puri said that India’s refining capacity is expected to increase to 309.5 million metric tonnes per annum (MMTPA) by 2030, with several refinery projects currently under implementation and some scheduled for completion over the next two years. “The global refining landscape is likely to consolidate into three to four major refining hubs, with India expected to emerge as one of them,” he said.
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