Amidst the ongoing conflict between Iran and Israel, the government has responded to reduce the prices of petrol and diesel in India. Ever since the conflict between Iran and Israel started. An increase of 10 percent has been seen in the prices of crude oil. In the international market, crude oil from Gulf countries has crossed $78 per barrel, which had initially gone below $70 per barrel in the last week of last month. Let us also tell you what the country's Petroleum Minister Hardeep Singh Puri has said in this whole matter?
Petroleum and Natural Gas Minister Hardeep Singh Puri on Monday said with global crude oil prices rising due to the growing crisis in West Asia, India is closely monitoring the situation and is fully confident of handling any challenges. Is. International oil prices have increased from around US $ 70 per barrel to more than $ 78 per barrel. Puri said here at ExxonMobil Global Outlook 2024 that we are keeping a close eye on the situation.
The Petroleum Minister said that if tension increases in West Asia, energy availability may be affected. But the supply has not been affected yet and India, the world's third largest oil consumer and importer, is completely confident of dealing with any situation. Puri said that there is no shortage of oil and India is confident of meeting its needs.
After Iran's missile attack, it is being speculated that Israel may target oil installations or nuclear plants in Iran. Iran, on the other hand, could choose to respond by directly attacking Israel or by closing the Strait of Hormuz, the world's most important oil transit hub. Due to this, oil prices will increase further. The Strait of Hormuz, located between Oman and Iran, connects the Persian Gulf to the Gulf of Oman and the Arabian Sea. One-fifth of global oil passes through the strait. Oil from all major oil producers – Saudi Arabia, Iraq, Kuwait and United Arab Emirates – is exported through this route. Only Saudi Arabia and the United Arab Emirates (UAE) have operational pipelines that would not be affected by the impact of the Strait of Hormuz.
When asked about the possibility of cutting oil prices, Puri said that the price of petrol and diesel is market based and petroleum companies take pricing decisions. He said that ensure that the situation does not worsen. We are monitoring the situation carefully. Till some time ago there was expectation of reduction in the prices of petrol and diesel. However, this has been curbed due to recent increase in prices. Before last week's surge, rating agency ICRA had said that there is scope for a reduction of two-three rupees per liter in the prices of petrol and diesel.
