Fuel Pricing Pressures Ignite Concerns in India

India faces challenges in sustaining losses from selling fuel below market prices due to global disruptions. Despite surging global fuel prices, the government has not planned to compensate retailers. The oil minister assured that India has adequate crude and gas reserves to manage the current situation.

India must evaluate the sustainability of subsidizing fuel prices below market levels, according to the nation's oil minister. As global petrol and diesel prices soar due to Middle Eastern conflicts, major economies, including India, opt to keep consumer prices stable to curb inflation.

Currently, state-run fuel retailers face financial losses, reportedly 100 rupees per liter on diesel and 20 rupees on petrol, yet no governmental compensation plan is in motion, said an official. The absence of relief adds pressure on retailers as they continue to sell fuel at reduced rates.

However, Oil Minister Hardeep Singh Puri reassured that India is well-stocked, with a 60-day supply of crude and LNG, and a 45-day supply of LPG. Puri emphasized that India has not imported liquefied natural gas from Russia, affirming global sourcing diversifications.