India enjoys some of the lowest fuel prices in the world, Minister of Petroleum & Natural Gas, Hardeep Singh Puri, said on Monday. Replying to a question in Parliament, Puri highlighted that India is the only country where fuel prices have decreased over the past 2.5 to 3 years.
Puri attributed this to the deregulation of petrol and diesel prices, which occurred in 2010 and 2014. This deregulation allows oil marketing companies (OMCs) to set fuel prices instead of the government. Despite this, Puri assured that the current government is committed to maintaining fair fuel prices.
Reflecting on past policies, Puri mentioned that the previous government issued oil bonds worth ₹1,41,000 crores, now requiring payments of ₹3,20,000 crores. This financial burden limits the government’s ability to manage fuel prices directly.
Addressing concerns about dealer margins, Puri explained that these are determined through commercial agreements between public sector OMCs and their dealers. He pointed out that India has 90,639 retail outlets, with 81,000 operated by the public sector and 9,000 by private companies such as Reliance and Nayara. The government is facilitating discussions between OMCs and dealers to find a fair resolution regarding dealer margins, he said.
Puri also emphasized the government’s efforts to control domestic fuel prices, including reducing excise duties twice, which brought down prices by ₹13 and ₹16, respectively. Additionally, VAT reductions in BJP-governed states have further helped control prices. However, he pointed out that some states ruled by opposition parties have not reduced VAT, resulting in higher fuel prices in those regions.
