Regarding increasing storage capacity, the Petroleum Minister stated that India now has enough crude on hand to last 76 to 80 days. This is inclusive of crude stocks at ports, refineries, pipelines and strategic petroleum reserves.
Prices of petrol and diesel will fall down only once the crude oil, which is currently cheaper, reaches Indian coastlines and refiners, Union Petroleum Minister Hardeep Singh Puri told reporters on Thursday (July 2, 2026). Thus, signalling that an immediate downward modification may not be attainable immediately.
The Petroleum Minister also disclosed that the sale of LPG, petrol and diesel in the June-end quarter resulted in a loss of approximately 74,781 crore for India’s state-run oil marketing businesses.
Mr Puri clarified that the retail fuels currently sold in pumps were made from crude oil that was bought months in advance when their prices, along with those of their freight and insurance, were increased due to the conflict in West Asia.
Refiners often seal their purchases of crude oil around two months before they get their actual deliveries.
He added, “That crude oil would have been obtained two months ago, so it was bought at the price available then. The petrol and diesel you buy from the dispensing stations today is [derived from] that crude oil.” In addition to the expense of insurance and freight, the price of crude oil [back then] was not as high as it is now, at roughly $70 per barrel.
“Today the crude oil that is sold at $70 per barrel or below will arrive much later,” Mr. Puri added.
At the height of the West Asia crisis in April of this year, benchmark Brent crude futures reached a top of $110 a barrel.
OMCs’ financial strain
The Petroleum Minister told reporters that under-recoveries, or losses resulting from a discrepancy between the price at which petrol, diesel and LPG were sold and the necessary price to cover production costs, totalled approximately 1.89 lakh crore in the June-end quarter.
This includes under-recovery of ₹19,905 crore on petrol, about ₹1.45 lakh crore on diesel and ₹24,148 crore on LPG.
“I’m not concerned about future oil prices, but I need to get ready.”
“I am not worried about it, but I have to prepare for it,” Mr. Puri stressed when considering potential future price developments. “Stocking while [crude oil] prices are low, increasing storage space and intensifying outreach to bilateral partners – all that will go hand in hand.”
In addition, Mr. Puri stated that India now has enough crude stocks for 76 to 80 days in answer to a question from The Hindu regarding increasing storage facilities. This includes strategic petroleum reserves, pipelines, refineries, and crude supplies at ports.
“Russian petrol is exported by traders rather than OMCs directly.”
In addition, Mr Puri responded to questions regarding petrol exports from India’s state-owned OMCs to Russia by stating that the purchases may be made through traders rather than directly from the OMCs.
“Traders also buy our output. The purchase of the Indian-origin products in question could have been made from traders, he continued.
