Hardeep Singh Puri Addresses Concerns Over Fuel Prices Amid Global Turmoil
‘How long can oil companies absorb losses?’: Hardeep Singh Puri on fuel prices
The Economic Times
Image: The Economic Times
Oil Minister Hardeep Singh Puri expressed concerns about the sustainability of oil companies absorbing losses from fuel sales below market rates, urging the need for India to enhance its strategic petroleum reserves. He highlighted the country's current reserves can only cover eight days of consumption, far below the recommended levels by the International Energy Agency.
- 01Hardeep Singh Puri acknowledges the limits of oil companies absorbing losses on fuel sales.
- 02India's current strategic petroleum reserves can cover only eight days of consumption.
- 03The International Energy Agency recommends reserves equivalent to 90 days of imports.
- 04Puri emphasizes the need for better strategic storage solutions for oil and gas.
- 05The ongoing Iran war has disrupted global energy markets, impacting fuel prices.
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During an industry conference in New Delhi, Oil Minister Hardeep Singh Puri addressed concerns regarding potential fuel price hikes, particularly as global energy markets are affected by the ongoing conflict in Iran. He noted that oil companies are currently selling fuel below market rates, raising questions about how long they can sustain these losses. Puri emphasized the necessity for India to enhance its strategic petroleum reserves, which currently can only cover eight days of national consumption of 5 million barrels per day. This is significantly lower than the 90 days of reserves recommended by the International Energy Agency for member countries. He pointed out that India, with its extensive coastline and proximity to West Asia, needs to rethink its strategic storage approach to ensure energy security. The minister's remarks come as Prime Minister Narendra Modi encourages citizens to reduce fuel consumption by relying more on public transport.
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The potential for rising fuel prices could affect consumers' daily expenses and transportation costs, making it crucial for citizens to adapt to possible changes in fuel pricing.
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