Puri urges oil companies to reduce prices in India if global prices are under control

He said, ‘I request the oil companies to reduce the oil prices in India also if the international oil prices are under control and the under-recovery of their companies has stopped.’

Petrol and diesel prices are not updated by the state-owned Indian Oil Corporation (IOC). Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) in 15 months. Now that oil prices have fallen, the losses are being recouped.

“I expect that if the under-recovery (or deficit) ends, the prices should come down,” he said at an event in Varanasi.

According to Puri, oil companies behaved responsibly as corporate citizens and did not pass on the increase in energy prices to consumers following Russia’s invasion of Ukraine.

“We didn’t ask them to cap prices. They did it themselves,” he said.

For the week ending June 24, 2022, this freeze resulted in a record-breaking loss 17.4 per liter on petrol and 27.7 per liter on diesel.

After input crude oil prices rose from $102.97 a barrel that month to $116.01 a barrel in June and fell to $82 a barrel this month, three fuel retailers announced no change in gasoline and diesel prices from April 6, 2022. not done.

The report of all three firms has come negative net Earnings resulting from maintaining prices when input costs were higher than retail selling prices. despite accounting for Rs 22,000 cr LPG subsidy announced but not paid, they jointly report net loss 21,201.18 crore from April to September.

According to Puri, the figures of loss for six months are known and it should be compensated.

The last few years have seen volatility in the oil prices in the global market. It fell into negative territory in 2020 at the start of the pandemic and has fluctuated wildly in 2022, reaching a 14-year high of around USD 140 per barrel in March 2022. Russia Invaded Ukraine, before falling on weak demand from its top importer China and worry about an economic downturn.

Emphasizing on the efforts of the central government to keep oil prices at an affordable level, the minister said, “Despite the international price hike, we can manage oil prices as the Center has increased production in November 2021 and May 2022.” reduced the fee. Some state governments did not do this. Yet reduce VAT and there is still a high oil price.”

Earlier today during the program in Varanasi, Puri had said that India is the third largest energy consumer in the world. He emphasized that India is pursuing domestic oil and gas exploration, diversifying its import base, transitioning to alternative energy sources, and using gas and green hydrogen as a path to energy security. doing.

(with inputs from agencies)