India's Strategic Moves to Control Oil Prices Amid Global Fluctuations

In a detailed exposition at the CII Annual Business Summit 2025, Union Minister for Petroleum and Natural Gas, Hardeep Puri, explained India's robust strategy to keep oil prices in check. The strategy includes excise duty cuts and collaborations with state governments to reduce VAT, ensuring financial relief for Indian consumers.

Puri highlighted significant reductions in cess on petrol and diesel in November 2021 and May 2022, leading to substantial price drops, with petrol and diesel prices slashed by Rs 13 and Rs 16 per liter, respectively. This was attributed to joint efforts by the central and state governments in tax reductions, illustrating a coordinated approach to price management.

The minister also underscored the influence of global factors like prices, insurance costs, and refining margins on fuel prices. He suggested that stable global conditions could lead to further reductions, citing increased crude availability from countries in the Western Hemisphere and diversified sourcing, even amid OPEC+ production cuts.

(With inputs from agencies.)