Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said that cutting petrol and diesel prices is not currently legitimate.

The statement addresses public demand for lower fuel costs amid fluctuating global crude prices. Because oil marketing companies (OMCs) are still recouping significant losses, any immediate price reduction could further destabilize the financial health of these energy providers.

Puri said that from 2022 to 2026, the price of petrol increased by 5.58% [1] and diesel by 6.23% [2]. Despite these figures, the minister said there has been no increase in the price of fuel for consumers because the national fiscal system absorbed the hike in crude oil prices.

According to Puri, OMCs continue to sell fuel refined from expensive crude oil purchased during the West Asia conflict. This inventory management, combined with other financial pressures, has left the companies in a precarious position. He said that cumulative under-recoveries for these companies have climbed to approximately ₹2.19 trillion [3].

"The question of cutting petrol and diesel prices is not legitimate now because oil marketing companies are still recovering past losses and carrying high‑cost crude inventory," Puri said.

The minister said that the government's fiscal mechanism prevented the pass-through of crude price hikes to the general public. This strategy shielded consumers from the volatility of the global market, though it shifted the financial burden onto the OMCs.

Puri said that OMCs may review petrol and diesel prices in two to three months if crude prices remain low. This potential review suggests that the government is monitoring market stability before considering any downward adjustments to retail prices.

“The question of cutting petrol and diesel prices is not legitimate now”

The Indian government is prioritizing the solvency of state-linked oil marketing companies over immediate consumer price relief. By absorbing crude price hikes through a fiscal buffer rather than passing them to the pump, the government avoided inflation but created a massive debt burden for OMCs. The ₹2.19 trillion under-recovery represents a significant financial gap that must be closed before the government can politically or economically justify a price cut.