Brent crude oil continues in low range, but no respite for fuel consumers in India
New Delhi, July 3: Even as the Brent crude oil prices continue to be in the range of $72 per barrel, significantly down from around USD 110 a few weeks ago, there is no change in petrol or diesel prices in India.
The international prices have been on the decline over the last three weeks in tune with the easing of tensions in West Asia.
However, Union Minister of Petroleum and Natural Gas Hardeep Singh Puri has indicated that there will be no cut in fuel prices in India, at least, for some weeks or months.
During an interaction with the media, Puri said, “If the question is, when will you bring the prices down? Well, they (OMCs) are still carrying the stock which was bought at a higher price with higher insurance, higher freight rates. If this (low crude prices) persists next two, three months, then that would be a legitimate question.”
Responding to further queries on fuel price revision, he added, “If crude prices remain at these levels for the next few weeks, cutting petrol and diesel prices will be a legitimate question that everybody asks. But what the situation will be then, it is not right for me to speculate.”
Hence, the fuel currently being processed and produced was essentially bought in April or early May, at the height of the oil price hikes.
Ever since the US and Iran signed 14-point memorandum of understanding on 17 June, Brent crude prices extended decline despite brief fluctuations during periods of renewed strikes.
Amid oversupply, Brent crude touched a four-year low of around $70.37 a barrel on Thursday as flows through Strait of Hormuz resumed and returned to pre-war levels.
This morning, Brent rebounded to trade around $72 a barrel.
The global benchmark has been in contango and registered its worst quarter since 2020 after reaching its four-year high of $126.41 on 30 April. (BVI)
