New Delhi, Feb 22 Petroleum prices in India are among the lowest in the world, said Union Petroleum Minister Hardeep Singh Puri.
Addressing a press conference in Vijaywada, Andhra Pradesh, he said that fuel prices in the country have reduced both in absolute terms and in real terms over the years.
Speaking about the global oil supply, Puri mentioned that more oil is now coming from countries like the US, Brazil, Guyana, Suriname, and Canada.
Stating that “there is no shortage of oil”, and that about 40 countries now supply oil to India, from the earlier 27, Puri added that “we welcome if more countries join”. This will also help lower the prices, he said.
"In fact, petroleum prices have come down during the last three years,” the Union Minister added.
He further stated that a negative growth of -0.67 per cent was witnessed with regard to petrol prices while the price of diesel increased marginally by 1.15 per cent.
Puri also clarified that the government does not gain any financial benefit from petroleum sales. On the contrary, the government had to provide Rs 22,000 crore to oil companies.
Referring to India’s economic progress, Puri recalled that in 2014, when Prime Minister Narendra Modi took charge, India was the 10th largest economy and considered one of the "Fragile Five" economies -- a term used for countries highly dependent on foreign investments for growth.
‘‘The Indian economy developed significantly under PM Modi's rule. It was the 10th largest economy then,” Puri added.
He stated that India’s place improved and the country has made strident steps since then, from the 10th largest economy to the fourth largest.
“India will soon achieve a $4 trillion economy," he noted.
Meanwhile, a report by Fitch Ratings said that India’s demand for petroleum products is expected to rise by three to four per cent in the current financial year ending on March 31, 2025.
India’s Oil Marketing Companies are likely to witness a decline in refinery margins in FY25 due to multiple challenges, including weaker product cracks, an oversupply in the region, and reduced gains from variations in crude oil prices, the report added.
The anticipated drop in margins suggests that OMCs may face pressure on profitability as refining economics become less favourable.
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