New Delhi – Union Petroleum and Natural Gas Minister Hardeep Singh Puri claimed on Monday that India is the only place in the world where petrol and diesel prices have gone down between November 2021 and April 2024. During the Question Hour in the Rajya Sabha, Puri focused on the fact that this decrease is not in line with the global trend where the majority of the countries have faced steep price hikes.
Decline in Fuel Prices
Minister Puri stressed that, during this time, petrol prices in India decreased by 13.65%, whilst diesel prices dropped by 10.97%. He pointed to the “bold, ambitious, and farsighted decisions” made by Prime Minister Narendra Modi’s government as the reason for this drop. On the other hand, countries like France, Germany, Italy, and Spain experienced petrol price rises of 22.19%, 15.28%, 14.82%, and 16.58%, respectively.
Deregulation and Market Dynamics.
Puri said that diesel and petrol prices were deregulated under the last UPA government; this means that the government no longer sets the market price. He said that today, the fuel prices in India are the lowest in the world and they have reduced for the last three years. However, in other countries, the prices have increased.
Criticism of Previous Government Policies.
The minister slammed the UPA government over the issuance of oil bonds worth ₹1.41 lakh crore, which have already burdened the economy with a repayment of ₹3.5 lakh crore. Puri took this point to show the current administration’s inherited financial challenges.
Dealers’ Margins and Legal Challenges
So far, the Oil Marketing Company (OMC) and dealers are on the same page as Puri described the margin adjustments dialogue. The last adjustment was in 2017.
Legal relations have been tense, dealers have taken the margins tied to the conditions which they are not afraid to challenge, or at least minimum wages act compliance. The case is still subjudice, but the negotiation continues under the government’s advice to get the matter solved.
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Current Retail Landscape
As of July 1, 2024, India has a total of 90,639 retail fuel outlets, with nearly 90% of the total being operated by public sector companies and the remaining by private sector companies. The minister highlighted the need for OMCs and dealers to find a middle ground in order to ensure that the business is conducted in a fair and sustainable manner.
The declarations of Minister Puri put emphasis on India’s distinctiveness in the international fuel price trends and underscore the government’s attempts to deal with the petroleum sector in light of the volatile international market.
Report By: Sonali Sarkar
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