The government is in wait-and-watch mode on reducing petrol and diesel prices, citing global volatility and the need to assess the US’s evolving policy on Russian oil imports.
By Sapna Das June 3, 2025, 2:56:37 PM IST (Updated)
The Indian government is treading carefully on the question of reducing retail fuel prices, with sources telling CNBC-TV18 that ongoing geopolitical uncertainty continues to weigh on the decision.
Officials are closely monitoring global developments, particularly signals from the United States about potential tariffs on Russian oil imports.
“There’s much to unpack before any call can be taken on petrol and diesel price relief,” sources said, adding that the government prefers a wait-and-watch approach for now.
India currently sources around 35% of its crude oil requirements from Russia, much of it at prices below the $60-per-barrel cap imposed under Western sanctions.
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Despite concerns, sources maintained that there is no shortage of crude in global markets, noting that OPEC has ramped up supply by 1.2 million barrels per day. While Indian oil companies are capable of diversifying sourcing strategies, access to discounted oil may become more complex if global sanctions evolve.
For now, the government is holding off on any immediate price intervention, keeping a close eye on global policy shifts and energy market dynamics.
(Edited by : Sheersh Kapoor)
First Published:
Jun 3, 2025 2:24 PM
IST
