Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, stated today that the government has chosen to protect Indian citizens from the sharp increase in international crude prices, amidst the ongoing US-Israel-Iran conflict and disruptions in the Strait of Hormuz, by taking a financial hit itself rather than passing the burden on to consumers. In a social media post, the Minister emphasized that the government has significantly reduced its tax revenues to mitigate the substantial losses experienced by oil companies, which amount to approximately 24 rupees per litre for petrol and 30 rupees per litre for diesel, at a time when international prices are soaring.
Mr. Puri stressed that international crude prices have risen dramatically over the past month, from around $70 per barrel to around $122 per barrel, leading to petrol and diesel price increases of 30 to 50 percent in Southeast Asian countries, around 30 percent in North America, 20 percent in Europe, and nearly 50 percent in African countries. He said the government had two options: either drastically increase prices like other nations, or bear the financial burden to protect Indian citizens from international volatility. Mr. Puri stated that under the leadership of Prime Minister Narendra Modi, the government, in keeping with its commitment over the past four years since the Russia-Ukraine conflict began, has decided to take a financial hit again to safeguard its citizens. The Minister further mentioned that an export tax has been levied, noting that as international prices of petrol and diesel have skyrocketed, any refinery exporting to foreign nations will have to pay the export tax. He expressed gratitude to Prime Minister Modi and Finance Minister Nirmala Sitharaman for the bold and visionary decision.