The war between America and Iran has stopped. Maritime transport on the Strait of Hormuz has also become more normal than before. Crude oil prices are at their lowest level since the war started on February 28. Now the question in everyone’s mind is whether the government will cut the prices of petrol and diesel, because when the prices of crude oil increased, the government immediately increased the prices, but will the same step be taken even if it decreases?
What did Minister Hardeep Puri say on reducing the price?
On Thursday, Union Petroleum and Natural Gas Minister Hardeep Singh Puri made the government’s stand clear on this question. He indicated that despite the huge fall in crude oil, there is little hope of reduction in the prices of petrol and diesel.
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According to the report of news agency PTI, when Hardeep Puri was asked whether there will be a reduction in fuel prices or not, he said that if international crude oil prices remain low for the next few weeks, then it would be a reasonable question.
India will increase strategic reserves
Puri also advocated increasing strategic oil reserves amid the Middle East crisis. He said that perhaps this is a lesson that we have learned. We have learned that we will try to increase storage.
Focus on strengthening energy security
According to Reuters report, Petroleum Minister Puri said that India will use the current fall in oil prices to strengthen its energy security by expanding fuel storage capacity and strengthening ties with bilateral partners. Ports, terminals, refineries and strategic petroleum reserves hold 76 to 80 days of crude oil.
Why is the government avoiding reducing prices?
Minister Hardeep Puri argued that oil companies had purchased crude at inflated prices amid the West Asia crisis. Right now this crude oil is being refined. Till June 30, petrol, diesel and LPG were sold below the cost price. Due to this, oil marketing companies suffered a loss of Rs 74,781 crore. Now international crude oil prices have fallen. But the companies had already purchased oil at expensive prices. Now this oil is being refined.
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This clearly means that the oil which the oil companies are currently refining was already purchased at an increased price. In such a situation, the companies cannot be saved from losses by reducing the prices, but there is a hope that when the purchase of crude oil starts at reduced prices, the government may also cut the prices.
Crude oil is at its lowest level
On Thursday, the price of Brent crude fell below $ 71 per barrel. On April 30, the price of a barrel was $126. At present, the price of crude oil in the international market is at its lowest level since February 27. On February 28, America and Israel attacked Iran. After this the price of crude oil had touched the sky.
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