State-run oil marketing companies suffered losses of Rs 74,781 crore after selling petrol, diesel and LPG below their cost price during the period up to June 30, Union Petroleum and Natural Gas Minister Hardeep Singh Puri said on Thursday.
He explained that although international crude oil prices have fallen in recent weeks, oil companies are still refining crude that was purchased when prices were much higher during the West Asia conflict. As crude oil is usually bought around two months in advance, the fuel being processed now comes from purchases made in April and early May, when global prices had surged.
Many consumers are expecting petrol and diesel prices to fall as global crude oil prices have eased. However, Puri said it would be reasonable to discuss a price cut only if crude prices remain low for the next few weeks.
Crude prices started declining only in the second half of June after the United States and Iran reached an agreement to end the conflict.
Puri also said India is open to buying stakes in oil and gas fields or energy companies abroad. Such investments, he said, could help strengthen the country’s energy security and ensure a more stable supply of fuel in the future, reported Reuters,
For now, any reduction in fuel prices will depend on how long international crude oil prices remain at lower levels.