Synopsis
Fuel prices might see a dip if international crude oil rates stay low for a few more weeks, according to Union Minister Hardeep Puri. Oil companies are currently using crude purchased at higher prices during the West Asia conflict, leading to past losses. However, sustained low global prices could pave the way for a reduction at the pump. India also plans to boost its oil storage capacity.
ANI Hardeep Singh Puri, Minister of Petroleum and Natural Gas Union Oil and Petroleum and Natural Gas Minister Hardeep Puri on Thursday said petrol and diesel prices could be reduced if international crude oil prices remain low for the next few weeks, according to a PTI report.
Responding to a question on a possible fuel price cut, Puri said it would become a legitimate issue if global oil prices continue to stay low over a sustained period.
His remarks came as crude oil prices fell below $71 per barrel after Qatar said Iran and the US had made “positive progress” in indirect talks that concluded on Wednesday, according to a Reuters report.
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Why fuel prices have not been cut yet According to the report, state-run oil marketing companies are still processing crude oil purchased during the peak of the West Asia conflict, when prices were significantly higher.
Oil companies generally procure crude at least two months in advance before refining it into petrol and diesel. As a result, the fuel currently being produced is based on crude bought in April or early May, when oil price
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