Petrol, Diesel Price Cut Possible If Brent Stays At $60: Oil Minister Puri

If prices remain at $60 a barrel, consumers can expect cut in prices of petrol and diesel, said Union Minister Hardeep Singh Puri. This comes after the government on Monday announced that it has increased excise duty on petrol and diesel by Rs 2 each. The changes are set to take place from Tuesday, according to a gazette notification.

During a press conference on Monday, the Union Minister of Petroleum and Natural Gas said that the hike in excise duty will not impact domestic retail prices.

The hike is expected to impact oil marketing companies, as they are likely to absorb the cost, as per the notification. This would reduce their marketing margin by Rs 2 per litre. "The OMCs carry inventory for a 45-day period. So, immediate price cut is unlikely," Puri said.

The duty on diesel now stands at Rs 10 per litre and on petrol at Rs 13 per litre, according to the gazette notification. Previously, the duties were Rs 8 per litre for diesel and Rs 11 per litre for petrol, as per data from the oil ministry.

LPG Price Hiked

Puri also announced a Rs 50 increase in the average price per LPG cylinder, citing rising international LPG prices. OMCs have absorbed the rate of increase so far, he said.

Low LPG price of a cylinder under PM Ujjwala Yojna resulted in a loss of Rs 41,338 crore. OMCs have enough room to cut petrol, diesel prices.

"We will review the LPG prices in every two-three weeks," he said.

Excise increase is intended to compensate OMCs for losses that they have incurred due to LPG prices

Considering the current international benchmark of Saudi CP at higher levels, losses of over approximately Rs 41,338 crore are expected to be incurred in LPG during FY25 by PSU oil companies.