New Delhi: Union Minister for Petroleum and Natural Gas Hardeep Singh Puri on July 2, Thursday stated that a reduction in retail petrol and diesel prices would become a “legitimate question” if global crude oil prices stabilise at their current levels for the next few weeks. However, he maintained that it was too early to speculate on an immediate price cut.
Addressing a press conference, the Minister provided crucial context regarding the financial state of national Oil Marketing Companies (OMCs), revealing that they had previously absorbed massive financial shocks to insulate consumers from global market volatility. “Oil marketing companies had incurred losses and under-recoveries of Rs 74,781 crore by selling petrol, diesel and LPG below cost. Rs 74,781. So the actual loss and under-recovery are both very high”, the Minister detailed.
However, noting the recent softening in international energy markets, Puri added, “If crude prices remain at these levels for the next few weeks, cutting petrol and diesel prices will be a legitimate question that everybody asks. But what the situation will be then, it is not right for me to speculate”.
Apart from pricing mechanisms, the Minister strongly defended the government’s clean energy push, dismissing social media scepticism surrounding E20 (20 per cent ethanol-blended) petrol. He expressed disappointment over a “complete make-believe narrative being unleashed on social media by people who should know better”.
Addressing specific consumer apprehensions regarding vehicular performance and fuel efficiency under the E20 regime, Puri noted that the trade-offs are minimal compared to the performance advantages. “Mileage, yes, it may drop a little, but mileage can drop a little because of various things”, Puri acknowledged, adding, “It is now well established that when you have ethanol, they use it in racing cars also. The acceleration increases, knocking improves”.
The Petroleum Minister also dispelled rumours regarding vehicular insurance compliance for cars running on the new fuel mix, stating categorically, “Insurance companies have given clarification that there is no issue”. To counter public misinformation, Puri revealed that the Ministry of Petroleum and Natural Gas has compiled a comprehensive 15-page dossier tracing the global and domestic trajectory of alternative energy matrices.
“This note traces the biofuel journey, not just in India but globally. It’s in this note, 15-page note,” he said.
Reassuring vehicle owners that the transition was backed by rigorous engineering benchmarks, the Minister emphasised that India adopted the 20 per cent threshold only after extensive consultations with statutory automotive bodies, including the Society of Indian Automobile Manufacturers (SIAM) and the Automotive Research Association of India (ARAI).
“We have reached this stage after consulting all the stakeholders, SIAM, ARAI”, Puri said, concluding that any future escalation in blending targets would follow a similarly strict scientific protocol: “If we move from 20 to 25 at some stage, it will be after all the tests have been done”.
(With Inputs from ANI)
