New Delhi [India]: Union Minister for Petroleum and Natural Gas Hardeep Singh Puri on Friday emphasized India’s success in keeping domestic fuel prices stable through calibrated policy interventions, including excise duty cuts, state-level VAT reductions, and diversified crude sourcing strategies.
Speaking at the CII Annual Business Summit 2025, Puri recalled the government’s past initiatives to reduce the burden on consumers, particularly the cess reductions in November 2021 and May 2022, which led to price cuts of ₹13 and ₹16 per litre for petrol and diesel respectively.
“Excise duty was reduced twice—in November 2021 and May 2022—and many state governments also cut their VAT. That collective effort enabled us to bring down petrol and diesel prices significantly,” Puri stated.
Outlook on Fuel Pricing
The minister explained that fuel pricing in India is largely influenced by international crude oil rates, along with insurance, freight, and refining margins. While recent OPEC+ production cuts had impacted supply, Puri noted that output is rebounding, particularly with supplies from non-OPEC nations.
“If global prices remain like this, we can expect further price stability or even reductions,” he said, suggesting cautious optimism for future fuel affordability.
Global Diversification and Energy Security
A key highlight of Puri’s address was India’s strategy of diversifying crude oil imports, which now span around 40 countries, up from just 27 in previous years.
“We’ve added new partners like Argentina, and continue to strengthen imports from Western Hemisphere countries such as Brazil, Guyana, Suriname, and Canada,” he added.
This diversification, according to Puri, has enhanced India’s energy resilience, especially during volatile periods in the global oil market.
“During difficult times, India has navigated the challenges reasonably well. With more energy sources becoming available, I am confident we’ll continue to do so,” he said.
Discounted Russian Oil: Pragmatic Approach
Puri also defended India’s purchase of discounted Russian crude, reiterating that the government’s priority is affordable energy for citizens.
“If oil is available at a lower price—no matter the origin—we will buy it. The Prime Minister’s primary responsibility is to ensure affordable energy for Indian consumers,” he emphasized.