Crude oil became cheaper, yet why petrol and diesel became expensive? Petroleum Ministry told when relief will be available

Petrol-Diesel Price Update: Minister of State for Petroleum and Natural Gas and Tourism Suresh Gopi said on Thursday that the fall in crude oil prices in the global market does not mean that the prices of petrol and diesel in India will immediately reduce. Talking to reporters, he said that many factors play a role in deciding domestic fuel prices. These also include the time taken for crude oil purchased at low prices to reach India.

The Minister of State said that the recent increase in fuel prices cannot be reversed immediately just because the prices of crude oil have softened somewhat in the international market. This will take time because low-cost crude oil will reach India through the Strait of Hormuz. There will be a lot of movement of ships there. It will take time for the situation to become normal.

‘Loss of Rs 12,000 crore to the government’

Suresh Gopi said that this year west asia The instability in the global energy market after the conflict in 2010 had a significant impact on state-owned oil marketing companies (OMCs). According to him, the government itself bore a large part of this additional burden to protect consumers from rising crude oil prices. He said that due to this impact, the government suffered a loss of Rs 12,000 crore. No state government gave up revenue by reducing its taxes during high fuel prices. The central government also has to run the country and the oil companies also have to survive.

Fuel price is not determined by crude oil alone

The minister also clarified that petrol and diesel prices do not depend only on international crude oil prices, but many other factors related to market and transportation are also taken into consideration. A decline in crude oil prices was recorded in the international market on Thursday. Brent crude was trading around $78 per barrel, down 1.64 per cent.

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At the same time, the price of American West Texas Intermediate (WTI) crude also declined by about 2 percent to around $ 75 per barrel. This fall in crude oil prices has been seen after diplomatic progress towards reducing tension in West Asia. Investors hope that as conditions in the region normalize, pressure on global energy supplies will ease.