Daijiworld Media Network - New Delhi
New Delhi, May 24: India has successfully managed the impact of fluctuating global crude oil prices, maintaining uninterrupted fuel availability through strong refining capacity and an efficient supply network, according to Anish De.
In an interaction with reporters on Saturday, De said the recent rise in petrol and diesel prices in India reflects delayed adjustments linked to global crude movements, while assuring that fuel supply across the country remains stable.
He pointed out that domestic fuel prices have increased by nearly Rs 5 per litre, which is relatively modest when compared to the sharp surge in international crude oil prices.
“Global crude prices have risen by almost 70 per cent, but the increase in petrol and diesel prices in India has been much lower,” De noted.
At the same time, he cautioned that additional price hikes may occur if crude oil prices continue to remain elevated in global markets.
“If international oil prices stay high for a prolonged period, further revisions in fuel prices are certainly possible,” he said.
According to De, the recent retail fuel price increases have only partially compensated oil marketing companies for rising input costs.
“Only about 25 per cent of the losses have been recovered through the latest hikes, while companies are still absorbing nearly 75 per cent of the burden,” he explained.
Despite concerns over rising prices, De stressed that India is not facing any shortage of crude oil or fuel supplies.
“There is adequate crude oil availability globally, and India’s refining infrastructure is more than capable of meeting domestic demand. Supply is not a concern,” he said.
Responding to reports of fuel shortages at select retail outlets, De clarified that such operational matters are handled directly by oil companies and do not reflect broader supply issues.
He also explained that domestic fuel price adjustments usually occur after a time lag following changes in international crude oil rates, resulting in temporary under-recovery for companies.
“The latest price revisions came several weeks after crude prices had already increased, so a considerable recovery gap still remains,” he added.
On the possibility of fuel prices being reduced if geopolitical tensions in West Asia ease and global crude prices soften, De said such decisions would ultimately depend on oil companies.
He further stated that India should prioritise bringing natural gas under the Goods and Services Tax (GST) framework before considering similar reforms for petrol and diesel.
“In my opinion, natural gas should be included under GST at the earliest, while petrol and diesel can be considered later,” he said.
De reiterated that India’s fuel distribution system remains resilient despite volatility in international energy markets, supported by robust refining infrastructure and reliable global crude availability.