Petrol and diesel prices remained largely steady across India on May 12 as concerns over the country’s energy security intensified following repeated calls by Prime Minister Narendra Modi to urge citizens to cut fuel consumption and conserve resources amid the ongoing crisis in West Asia.
The center has yet to announce any nationwide revision of retail fuel prices, even as global oil prices remain elevated due to geopolitical tensions in the Middle East.
The situation has sparked speculation of possible fuel rationing measures after the prime minister recently urged citizens to curb excess fuel consumption, reduce consumption of cooking oil and postpone purchases of non-essential gold until next year.
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A day after the Prime Minister’s remarks, the government held a high-level review meeting on the evolving situation in West Asia and reiterated that India is not facing any shortage of petroleum products.
At the same time, the government has acknowledged that state-owned oil marketing companies (OMCs) are absorbing large financial losses to protect consumers from a sharp rise in global oil prices.
Gasoline prices on May 12
Here are the latest petrol prices in major Indian cities:
Gasoline prices on May 12(Napkin)
The government will review energy preparedness
The fifth meeting of the Informal Group of Ministers (IGoM) on West Asia was chaired by Defense Minister Rajnath Singh on Monday.
The meeting was attended by the Ministers of Petroleum, Railways, Civil Aviation, Fertilizers, Ports and Science.
According to an official government briefing, India currently has 60 days of oil and natural gas reserves along with 45 days of LPG fleet. The government has described the reserve position as sufficient to manage current supply-side risks resulting from the geopolitical situation.
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“There is no cause for concern and no reason for citizens to rush to retail outlets,” the government said in a statement.
Officials also informed ministers that India’s foreign exchange reserves remain at a comfortable $703 billion, providing an additional cushion against external energy shocks.
Diesel prices in major cities
Here are the latest diesel prices as of May 12:
Diesel prices on May 12(Napkin)
Oil companies are facing increasing financial pressure
Although retail fuel prices remain unchanged, the government has acknowledged the growing economic burden caused by high international oil prices.
According to a PTI report, state oil marketing companies are currently absorbing almost losses ₹1,600 million crowns ₹1,700 crore every day to protect consumers from the surge in fuel prices.
In the past 10 weeks since the escalation of the conflict in the Middle East, the cumulative losses suffered by these companies have reportedly exceeded ₹1 lakh crore.
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The report said the mounting pressure raised concerns about how long oil companies could continue to absorb such losses without a financial burden.
Despite a nearly 50% rise in crude oil input costs globally, public sector oil companies including Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited continued to supply petrol, diesel and LPG without major revisions in retail prices.
According to PTI sources, the combined under-recovery of these companies – the difference between production cost and retail selling price – has reached a record high.
Despite soaring oil prices, petrol and diesel continue to sell at almost the same rates as in the last two years, with petrol in Delhi costing ₹94.77 per liter and diesel at ₹87.67 per litre.
