Union Minister for Petroleum & Natural Gas Shahnawaz Hussain defended a recent increase in LPG prices, attributing the move to a global oil crisis [1].
The price adjustment comes as geopolitical tensions and market volatility pressure energy costs, impacting millions of households that rely on subsidized or regulated fuel in India.
Speaking in Tamil Nadu on May 16, 2024, Hussain said that India is better placed than many global peers to absorb the impact of the oil crisis and that the government has kept fuel prices under control [1]. He said that the current global average for petrol stands at Rs 145 per litre [1].
According to government data, the recent marginal increase in fuel prices was Rs 3 per litre [1]. While some energy experts had previously predicted that LPG prices would rise soon due to pressures in West Asia, the government has now implemented the adjustment [1], [2].
Energy analyst Rajesh Kumar said that rising international oil prices and geopolitical tensions in West Asia are putting pressure on global crude markets, which will reflect in LPG prices [2]. This volatility has forced the ministry to balance international procurement costs with domestic price stability.
Hussain said that despite the increase, the Indian market remains more resilient than other nations facing similar crude oil shocks [1]. The ministry continues to monitor international benchmarks to determine further adjustments to petrol and diesel costs [2].
“"India is better placed than many global peers to absorb the impact of the oil crisis"”
The Indian government is attempting to mitigate the domestic economic shock of volatile global crude markets by implementing small, incremental price hikes rather than sudden, large increases. By benchmarking domestic prices against a higher global average, the administration is signaling that while costs are rising, the state's intervention still provides a relative cushion compared to international markets.
