Crude is Down, So Why is Petrol Still Costly? Hardeep Singh Puri Explains the INR 74,781 Crore Reality Check
Union Petroleum Minister Hardeep Singh Puri said consumers may have to wait longer for petrol and diesel price cuts despite falling global crude oil prices. He said state-run oil marketing companies incurred losses of ₹74,781 crore by selling fuel below cost until June 30, delaying any immediate reduction in retail prices.
Indian consumers eagerly waiting for a drop in petrol and diesel prices following the recent slump in global crude oil will have to wait longer. Union Petroleum and Natural Gas Minister Hardeep Singh Puri revealed that state-run oil companies have suffered a massive INR 74,781 crore loss for selling fuel below cost up to June 30, effectively putting a brake on immediate price cuts.
The minister's statement directly addresses growing public frustration. As international oil prices began to slide, social media and public forums flooded with demands for the government to pass the benefits on to the common man. However, the government has made it clear that domestic relief is tied to a massive financial backlog. Aviation Fuel Prices Cut by INR 5 per Litre in India Following Oil Ease.
According to Minister Puri, while global oil benchmarks have indeed come down, Indian oil marketing companies are still stuck processing highly expensive crude oil. This inventory was purchased at premium rates during the peak of the West Asia geopolitical crisis, creating a lag in how global price drops hit Indian fuel stations.
During the height of the Middle East conflict, shipping lines and energy markets faced severe disruptions, causing global oil prices to skyrocket. To protect Indian citizens from inflation and severe price shocks, state-owned fuel retailers chose to freeze retail pump prices, absorbing the massive losses themselves. Nayara Petrol Price Cut by INR 5, Diesel by INR 3 per Litre as Global Oil Rates Ease.
Hardeep Puri on Expensive Crude Purchases
Oil Minister Hardeep Puri says oil cos suffered Rs 74,781-cr loss for selling petrol, diesel and LPG below cost in period up to June 30
International oil prices have come down but companies still processing crude bought at height of West Asia crisis: Union Minister Puri pic.twitter.com/aBwpyF8L7P
— Press Trust of India (@PTI_News) July 2, 2026
While India successfully avoided the fuel shortages and rationing seen in neighboring nations, the strategy left a deep dent in the balance sheets of energy giants like IOCL, BPCL, and HPCL. The government has indicated that any future reduction in petrol and diesel prices will depend entirely on how fast these oil companies can recover from their multi-crore losses and stabilize their financial margins.
(The above story first appeared on LatestLY on Jul 02, 2026 04:44 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
