After the agreement between Iran and America, crude oil prices are continuously falling, but will this reduce the prices of petrol and diesel in the country? The government has issued a statement in this regard. Union Minister Suresh Gopi said on Thursday that despite the fall in crude oil prices in the global market, fuel prices cannot be reduced immediately. Explaining the reason, the Union Minister said that the prices of petrol and diesel are determined by many factors, including the time taken for cheap crude oil to reach India.
What did the Union Minister say about the prices of petrol and diesel?
Talking about the recent hike in fuel prices, Minister of State for Petroleum, Natural Gas and Tourism Suresh Gopi said that even though prices have increased by about ₹3.94 per litre, the hike cannot be rolled back immediately based on the fall in global crude oil prices. He said, “Cheap crude oil reaches India through the Strait of Hormuz. This process takes time due to heavy movement of ships there; hence, it will take some time for the situation to return to normal.”
Central government suffered a loss of ₹12,000 crore: Gopi
Referring to the Iran-US dispute, he said that after the tension that started in February, oil companies suffered huge losses and the central government itself bore most of the financial burden. “The Center has suffered a loss of ₹12,000 crore due to this impact. No state has reduced its revenue by reducing excise duty on increased fuel prices. The central government needs to step in and oil companies should also be able to do the same,” Gopi said.
It is noteworthy that a peace agreement has been signed between America and Iran, after which the Strait of Hormuz will be opened for commercial ships. About 20% of the world’s crude oil passes through this sea route. As a result, crude oil prices fell sharply soon after the deal was struck. Crude oil prices reached $100 per barrel during the blockade of the Strait of Hormuz; Today they are around $80 per barrel.
