Petrol, diesel prices may come down as oil supply woes have subsided

Concerns over the price and supply of oil, sparked by the recent terror strikes on Saudi Aramco’s oil infrastructure, have now subsided, Petroleum Minister Dharmendra Pradhan said on Thursday. Oil marketing companies will now see the price of petrol and diesel coming down soon.

On Thursday, the price of petrol dropped by 10 paise to Rs 74.51 a litre and diesel by 6 paisa to Rs 67.43 a litre in Delhi, the first reduction since September 8. “At present, there are no concerns. The world has averted a big crisis,” Pradhan said on the sidelines of the India Economic Summit.

Sanjiv Singh, IndianOil Corporation chairman, said, “The price in India has started coming down from today. After the attacks on Saudi facilities, product prices were also affected. Gasoline (petrol) and diesel price had gone up.”

India’s diversified crude and product basket was one reason that helped India in avoiding the Saudi Aramco crisis. Because of the shortfall in supply from Saudi Aramco, India was staring at a liquefied petroleum gas (LPG) supply crisis in states like Maharashtra, Karnataka, Punjab and Goa.

“There is no shortage on supply front for LPG now. We have managed the situation,” Singh added.

Abu Dhabi National Oil Company (Adnoc) had assured two additional cargoes of LPG to India during this period to avert a crisis because of higher festive demand. Pradhan added that price volatility and concerns about sustained oil supplies made consuming countries vulnerable given the fact that India, along with most South Asian countries, has a major dependency on crude oil and gas imports. “So, securing affordable and sustainable energy figures as a top agenda for all these countries, including India.”

The minister said the energy demand in India is estimated to grow at over 4 per cent per annum till 2035 and to transform into a $5-trillion economy, the country should ensure energy availability to 1.3 billion people. India has chalked out a road map to increase the share of non-fossil fuels, by increasing renewable energy capacity to much beyond 175 giga watt (Gw) by 2022, and later up to 450 Gw.

“We will make our transport sector green through e-mobility. The proportion of the biofuel blend in petrol and diesel will be increased,” Pradhan added.

In addition, the country has set a goal to enhance the use of LPG in the South Asia region. “We will, for the first time, be sourcing LPG from Bangladesh for our north-eastern states,” he said.