Petrol and diesel prices remained broadly unchanged across India on May 13, even as concerns about energy security grew amid the crisis in West Asia and as Prime Minister Narendra Modi urged citizens to conserve fuel and curb unnecessary consumption.
The government has yet to announce any nationwide revision of retail fuel prices, despite sustained pressure from increased global oil prices driven by geopolitical tensions in the Middle East.
The prime minister’s remarks urging cuts in fuel and cooking oil consumption and postponing non-essential gold purchases fueled speculation about possible measures to control demand, although no such moves have been confirmed.
Responding to the developing situation, the government held a high-level review meeting and reiterated that India is not facing any shortage of petroleum products, adding that state-owned oil marketing companies are absorbing significant financial losses to protect consumers from global price volatility.
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 brought together ministers from the ministries of petroleum, railways, civil aviation, fertilisers, ports and science.
According to an official briefing quoted in the Mint report, India currently has 60 days of oil and natural gas reserves along with 45 days of LPG fleet. The government said the reserve position is sufficient to manage supply-side risks arising from the ongoing geopolitical situation.
Officials said there was “no cause for concern” and urged citizens not to rush to retail stores. They further said that India’s foreign exchange reserves remain at a comfortable $703 billion, offering an additional cushion against external energy shocks.
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.
