Centre keeping close watch on global oil market: Suresh Gopi

New Delhi, June 14 (IANS) Union Minister of State for Petroleum and Natural Gas Suresh Gopi said on Sunday that any decision on revising the prices of petrol, diesel and LPG in the domestic market would depend on the availability and stability of crude oil supplies in the global market.

Speaking to reporters in Kerala’s Thrissur district, Gopi said the Centre was keeping a close track of developments in global energy markets before taking any call on fuel prices.

“Let us see the supply of crude oil. We have the minister concerned, Hardeep Singh Puri. Let it come,” Gopi said in response to questions on the possibility of a revision in fuel prices.

The minister noted that assessments would be made based on the flow of crude oil supplies and the broader energy situation.

Meanwhile, Minister of Petroleum and Natural Gas Hardeep Singh Puri said in Ludhiana on Saturday that the international situation related to the Iran, America and Israel war has increased challenges in the petroleum sector, which has led to a hike in petrol prices. However, he said that the Central government has ensured that the citizens of the country should not be impacted by the price rise.

Public sector oil companies — Indian Oil, Bharat Petroleum and Hindustan Petroleum — are still absorbing losses to cushion consumers from the global oil price spike. The under-recoveries of the marketing companies are at around Rs 600 crore to Rs 750 crore per day on the sale of petrol, diesel, and domestic LPG. Despite recent retail price hikes, the gap between global crude costs and pump prices remains a major financial strain on the oil firms, officials said.

However, there is some positive news that the US-Iran peace deal is very close to being signed. This would lead to an opening of the Strait of Hormuz, enabling a resumption in the flow of oil and gas exports from the Persian Gulf, which in turn will bring down energy prices. Around 20 per cent of the world’s oil and gas exports transit through the Strait of Hormuz, and any blocking of ship movement through the crucial waterway leads to a spike in global prices.

India has been sourcing oil imports from alternative sources such as Venezuela and African countries such as Nigeria and Angola. Besides, imports of oil from Russia have also been stepped up, and during May, India was the second-largest importer of Russian oil next only to China.

–IANS

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