Will Petrol, Diesel Prices Reduce In India Amid Fluctuating Crude Prices? What Govt Said In Parliament

The government on Thursday did not indicate whether it would cut petrol and diesel prices despite the recent fall in Brent crude. The government said that international oil markets are very volatile due to the ongoing crisis in West Asia and state-owned oil marketing companies (OMCs) are incurring huge losses.

In a written reply to an unstarred question in the Lok Sabha, Minister of State for Petroleum and Natural Gas Suresh Gopi cited fluctuations in international crude oil prices due to the West Asian crisis when the government was responding to questions related to the fall in petrol and diesel prices.

"The price of Brent crude oil was USD 122.86/barrel on 30th April 2026 and USD 68.17/barrel on 2nd July 2026. However, the Brent crude prices continue to heavily fluctuate and have again increased to USD 92.19/barrel on 21st July 2026," the minister said.

This response came in response to a question about whether the government had taken any decision to reduce the prices of petroleum products, including petrol and LPG, following the fall in Brent crude oil prices. While explaining the factors that influence domestic fuel prices, the government did not comment on its decision to reduce the retail price of petrol or diesel.

Instead, the government said that India imports more than 88 per cent of its crude oil needs and that international crude oil prices have risen significantly since March 2026 due to the West Asian crisis.

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"To protect consumers from its impact, in March 2026, the Government reduced the excise duties on petrol and diesel by Rs. 10 per litre each, resulting in a substantial negative impact on its tax revenues," the minister said.

As per the reply, the continuing geopolitical uncertainty had affected the finances of state-run oil retailers.

"The conflict in West Asia has not abated, and the resultant geopolitical situation continues to be highly volatile. PSU OMCs have incurred huge losses on the sale of petrol, diesel, LPG, etc. Against this, Petrol and Diesel prices were increased only marginally by the PSU OMCs," the minister said.

According to government data, the current retail price of petrol in Delhi is Rs 102.12 per litre and diesel Rs 95.20 per litre. The response did not specify any timeframe or conditions under which petrol and diesel prices could be reduced.

With Inputs From Agencies (ANI)