Petroleum Minister Hardeep Puri explained that Indian oil companies currently have a 45-day supply of oil bought at around $75 per barrel.
India’s Crude Oil Imports Fall Below $70 Per Barrel, But Excise Duty Hike Keeps Petrol and Diesel Prices Unchanged, latest News:
India's average crude oil import price fell to $69.39 per barrel on April 8, marking a significant 22% decrease from $89.44 per barrel in April 2024. At the same time, the price of Brent crude (a global oil benchmark) dipped below $65 per barrel, sparking hopes of lower petrol and diesel prices, which could benefit consumers and improve India's economic stability.
Despite the decline in global oil prices, experts predict further drops due to low global growth and the escalating risk of a trade war, which could reduce demand. India imports over 87% of the crude oil it processes, and with crude oil making up about 90% of the refining cost, any changes in its price directly impact fuel prices.
Goldman Sachs projects that Brent crude will average around $63 per barrel through the rest of 2025, anticipating sustained low oil prices. Furthermore, OPEC has reduced its forecasts for global oil demand growth in 2025 and 2026. The revised projections estimate an increase of 1.3 million barrels per day each year (roughly 1% growth), suggesting that demand for oil may remain weak, keeping prices down.
Pump prices may decrease once oil companies deplete their existing stocks of higher-priced oil.
At a press conference on April 7, Petroleum Minister Hardeep Puri explained that Indian oil companies currently have a 45-day supply of oil bought at around $75 per barrel. Once these stocks are replaced with oil purchased at lower prices (around $60–$65 per barrel), the companies will be in a position to reduce petrol and diesel prices for consumers.
The government expects to generate approximately Rs 32,000 crore from this move, having raised the excise duty on petrol and diesel by Rs 2 per litre starting on March 8. The increased revenue will be used to cross-subsidize cooking gas cylinders. According to an executive, in a report published by Hindustimes, if international oil prices stay low, the next benefit will go to consumers, as the government wants public sector oil marketing companies (OMCs) to reduce retail prices of petrol and diesel.
The last time consumer petrol and diesel prices were reduced was in March 2024, just before the general elections, when crude oil was priced at $84.49 per barrel. In the first two weeks of April, the import cost dropped to $69.39 per barrel, a 17.87% decline from March 2024. Despite this, oil marketing companies (OMCs) are still making a ₹10-12 per litre margin, but the base prices of petrol and diesel have not yet been adjusted in line with international benchmarks.
On April 8, the Indian Oil Corporation (IOC) reduced the base price of petrol and diesel by ₹2 per litre. However, the government offset this reduction by raising excise duties, causing the pump prices in New Delhi to remain unchanged: ₹94.77 per litre for petrol and ₹87.67 per litre for diesel.
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