Petrol-Diesel Price Cut Soon As Brent Crude Slips To Pre-War Levels? Petroleum Minister Responds

Published 2 July 2026 · finance

Petrol-Diesel Price Cut Soon As Brent Crude Slips To Pre-War Levels? Petroleum Minister Responds Published By, Last Updated: July 02, 2026, 16:58 IST Responding to

Petrol-Diesel Price Cut Soon As Brent Crude Slips To Pre-War Levels? Petroleum Minister Responds Published By, Last Updated: July 02, 2026, 16:58 IST Responding to questions on a possible fuel price cut, Union Petroleum Minister Hardeep Puri said the government would review the situation if lower crude oil prices remain stable. Rapid Read According to Puri, OMCs incurred losses of Rs 74,781 crore by selling petrol, diesel and LPG below cost during the period leading up to June 30. With global Brent crude prices falling back to pre-West Asia conflict levels, speculation is growing over whether petrol and diesel prices in India will also be reduced. Responding to questions on a possible fuel price cut, Union Petroleum Minister Hardeep Singh Puri said the government would review the situation if lower crude oil prices remain stable. “The prices are fixed on the basis of supplies procured a couple of months back. If the situation persists, we will relook it," Puri said. The minister also noted that oil marketing companies (OMCs) are still processing crude purchased at the peak of the West Asia conflict, which is why the decline in international crude prices has not yet translated into lower retail fuel prices.

“International oil prices have come down, but companies are still processing crude bought at the height of the West Asia crisis," he said. According to Puri, OMCs incurred losses of Rs 74,781 crore by selling petrol, diesel and LPG below cost during the period leading up to June 30. The minister also said there was no oil disruption, shortage or long queues outside fuel stations during the war. Fuel Price Hike In India Retail fuel prices in India witnessed a cumulative increase of nearly Rs 7.50 per litre following the outbreak of the West Asia conflict. To cushion the initial impact, the government significantly reduced import duty before later allowing retail prices to rise. The Petroleum Minister also defended the government’s handling of fuel prices, saying the increase in petrol prices in India during the recent West Asia conflict was significantly lower than in many developed and neighbouring countries. Comparing fuel price movements between June 22 and June 26, Puri said petrol prices in India rose by around 5 per cent, while several other countries witnessed much steeper increases.

“I use the same reference period, June 22 to June 26. Let me start with France, Germany and Italy. The increase in petrol prices during this four-month period has been: France, 17.74 per cent; Germany, 19.05 per cent; and Italy, 18.39 per cent," he said. Drawing comparisons with India’s neighbours, the minister said petrol prices increased by 39.77 per cent in Pakistan, 36.66 per cent in Sri Lanka, 20.3 per cent in Nepal and 42.69 per cent in Bangladesh. “So if you look at the increases in petrol prices in developing countries and developed countries…" Puri said, arguing that India’s fuel price increase remained relatively modest despite the sharp spike in global crude oil prices during the conflict. Brent Crude At Around USD 70 With the Strait of Hormuz shut during the conflict, Brent crude prices surged to nearly USD 120 per barrel, while Indian oil marketing companies absorbed combined daily under-recoveries of around Rs 2,400 crore. Since then, global Brent crude prices have retreated to pre-conflict levels to around USD 70 per barrel after the US and Iran signed a memorandum of understanding (MoU) aimed at ending hostilities.