Overview
The Union Petroleum Minister Hardeep Singh Puri told reporters on 2 July 2026 that retail fuel prices will not fall immediately even though crude oil prices have dropped to about $70 per barrel. The reason is the time lag between crude purchases and their arrival at Indian refineries.
Key Developments
- Current crude purchases at $70/barrel will reach India only after a few months.
- Refiners typically buy crude two months ahead of physical delivery.
- State‑run OMCs recorded a loss of ₹74,781 crore in the June‑end quarter from LPG, Petrol and Diesel sales.
- Total under‑recovery stood at about ₹1.89 lakh crore for the quarter.
- India’s crude stockpile covers 76‑80 days of consumption, including at ports, refineries, pipelines and the Strategic Petroleum Reserve.
Important Facts
During the West Asia crisis, Brent crude peaked at $110 per barrel in April 2026. By the evening of 2 July 2026, it was trading at a four‑month low of $70.15 per barrel, lower than pre‑conflict levels.
The loss breakdown includes ₹19,905 crore on Petrol, about ₹1.45 lakh crore on Diesel, and ₹24,148 crore on LPG.